The existing analysis of national climate policies shows the upper bound of costs, because only some input substitution and output reductions are considered. When demand for capital is substituted with fuels, it is usually interpreted as an installation of abatement technologies. The decreasing marginal rate of substitution implies that this way of abatement is relatively expensive. The explicit representation of the abatement technologies with top-down models allows us to avoid this problem and decrease the estimated cost of pollutions abatement. The paper describes two techniques of dealing with this in
a CGE framework