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A Climate Treaty and the Norwegian Economy: A CGE Assessment

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  • Anne Brendemoen
  • Haakon Vennemo
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    Abstract

    This paper examines the impact of an international climate treaty on 61 single country-Norway. A disaggregate computable general equilibrium (CGE), model is used. We discuss the treaty's effects on main macroeconomic indicators, economic growth, distributional impacts, the impact on pollutant emissions other than CO2 and the secondary benefits of this reduction. The results suggest that CO2 emissions will decrease compared to the current level, The distributional impacts are modest. Increases in secondary benefits recoup almost one half of the loss in private consumption. We characterize the uncertainty of this estimate.

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    Bibliographic Info

    Article provided by International Association for Energy Economics in its journal The Energy Journal.

    Volume (Year): Volume15 (1994)
    Issue (Month): Number 1 ()
    Pages: 77-93

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    Handle: RePEc:aen:journl:1994v15-01-a05

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    Cited by:
    1. Bodil Larsen, 1997. "Economic impacts of reducing NO x emissions in Norway," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(1), pages 125-132, January.
    2. Anil Markandya & Dirk T.G. Rübbelke, 2003. "Ancillary Benefits of Climate Policy," Working Papers 2003.105, Fondazione Eni Enrico Mattei.
    3. Bodil Larsen & Runa Nesbakken, 1997. "Norwegian emissions of CO 2 1987–1994," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(3), pages 275-290, April.
    4. Vennemo, Haakon, 1997. "A dynamic applied general equilibrium model with environmental feedbacks," Economic Modelling, Elsevier, vol. 14(1), pages 99-154, January.
    5. Brita Bye & Snorre Kverndokk & Knut Rosendahl, 2002. "Mitigation costs, distributional effects, and ancillary benefits of carbon policies in the Nordic countries, the U.K., and Ireland," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 7(4), pages 339-366, December.
    6. Grepperud, Sverre & Rasmussen, Ingeborg, 2004. "A general equilibrium assessment of rebound effects," Energy Economics, Elsevier, vol. 26(2), pages 261-282, March.
    7. Terry Barker & Susan Baylis & Clare Bryden, 1994. "Achieving the Rio target: CO2 abatement through fiscal policy in the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 15(3), pages 1-18, August.
    8. Lars Håkonsen & Lars Mathiesen, 1997. "CO 2-stabilization may be a ‘no-regrets’ policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(2), pages 171-198, March.
    9. Hettich, Frank & Svane, Minna Selene, 1998. "Environmental policy in a two sector endogenous growth model," Discussion Papers, Series 1 290, University of Konstanz, Department of Economics.
    10. Bye, Brita, 2000. "Environmental Tax Reform and Producer Foresight: An Intertemporal Computable General Equilibrium Analysis," Journal of Policy Modeling, Elsevier, vol. 22(6), pages 719-752, November.
    11. Lans Bovenberg, A. & de Mooij, Ruud A., 1997. "Environmental tax reform and endogenous growth," Journal of Public Economics, Elsevier, vol. 63(2), pages 207-237, January.
    12. Kverndokk,S. & Rosendahl,E., 2000. "CO2 mitigation costs and ancillary benefits in the Nordic countries, the UK and Ireland : a survey," Memorandum 34/2000, Oslo University, Department of Economics.
    13. Bruvoll, Annegrete & Larsen, Bodil Merethe, 2004. "Greenhouse gas emissions in Norway: do carbon taxes work?," Energy Policy, Elsevier, vol. 32(4), pages 493-505, March.

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