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Impact of climate policy on the Basque country

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  • Gonzalez, Mikel
  • Dellink, Rob B.

Abstract

In this paper analyze the economic effects of CO2 emission reductions in the Basque Country (Spain) using an applied general equilibrium (AGE) model with specific attention to environment-energy-economy interactions. Environmental policy is implemented through a system of tradable pollution permits that the government auctions. The costs of different levels of CO2 abatement are discussed, focusing on the variations of macroeconomic, sectoral and environment-energy variables. Results show that the costs for achieving the Kyoto targets can remain limited if the appropriate combination of changes in fuel-mix and restructuring of the economy is induced. Impacto económico del control del cambio climático en el País Vasco Resumen En este trabajo analizamos el impacto económico de una reducción de las emisiones de CO2 en el País Vasco. Para ello utilizamos un modelo de equilibrio general aplicado (MEGA), que presta especial atención a las interacciones entre economía, medio ambiente y energía y que implementa la política ambiental mediante un mercado de permisos de emisión regulado por el gobierno. El artículo discute el coste de reducción de diferentes niveles en las emisiones, mostrando las variaciones en las principales variables macroeconómicas, sectoriales y energéticas. Los resultados muestran que los costes de cumplir los objetivos de Kyoto pueden ser moderados, si se consiguen inducir los cambios apropiados en el mix energético y en las estructuras de producción y consumo. Palabras clave: Modelos de Equilibrio General Aplicado; Cambio Climático; Mercados de Permisos de Emisión, País Vasco

Suggested Citation

  • Gonzalez, Mikel & Dellink, Rob B., 2006. "Impact of climate policy on the Basque country," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12), pages 1-27.
    • Handle: RePEc:ags:earnsa:7993
    DOI: 10.22004/ag.econ.7993
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    References listed on IDEAS

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