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The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application

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  • Dorothée Boccanfuso

    (GREDI, Department of economics, Faculté d'administration, Université de Sherbrooke, Sherbrooke, QC J1K 2R1, Canada)

  • Luc Savard

    (GREDI, Department of economics, Faculté d'administration, Université de Sherbrooke, Sherbrooke, QC J1K 2R1, Canada)

  • Antonio Estache

    (European Centre for Advanced Research in Economics and Statistics, Free University of Brussels, Brussels, 1050, Belgium)

Abstract

In this paper, we present a distributional impact analysis of climate change policies envisaged or implemented to reduce greenhouse gas emissions in Senegal. We consider policies implemented in developed countries and their impact on a developing country. Moreover, we simulate the diminishing productivity of agricultural land as a potential result of climate change (CC) for Senegal. This country is exposed to the direct consequences of CC and is vulnerable to changes in world prices of energy, given its lack of substitution capacity. Past researches have shown that countries with this profile will bear the greatest burden of CC and its mitigation policies. Our results reveal slight increases in poverty when the world price of fossil fuels increases and the negative impact is further amplified with decreases in land productivity. However, subsidizing electricity consumption to protect consumers from world price increases in fossil fuels is shown to provide a weak cushion to poverty increase.

Suggested Citation

  • Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, vol. 5(6), pages 1-24, June.
    • Handle: RePEc:gam:jsusta:v:5:y:2013:i:6:p:2727-2750:d:26567
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    Cited by:

    1. Cicowiez, Martin & Lofgren, Hans & Escobar, Pamela, 2017. "How Many Households Does a CGE Model Need and How Should They Be Disaggregated?," Conference papers 332827, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Peng Ou & Ruting Huang & Xin Yao, 2016. "Economic Impacts of Power Shortage," Sustainability, MDPI, vol. 8(7), pages 1-21, July.
    3. Yuanying Chi & Zhengquan Guo & Yuhua Zheng & Xingping Zhang, 2014. "Scenarios Analysis of the Energies’ Consumption and Carbon Emissions in China Based on a Dynamic CGE Model," Sustainability, MDPI, vol. 6(2), pages 1-26, January.
    4. Femi E. Hounnou & Houinsou Dedehouanou & Afio Zannou & Johanes Agbahey & Gauthier Biaou, 2019. "Economy-Wide Effects of Climate Change in Benin: An Applied General Equilibrium Analysis," Sustainability, MDPI, vol. 11(23), pages 1-15, November.

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    More about this item

    Keywords

    global warming; environmental policies; income distribution; developing countries;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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