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Global Warming Policy and the Pennsylvania Economy: A Computable General Equilibrium Analysis

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Author Info
Li, Ping-Cheng
Rose, Adam
Abstract

Most studies of the impacts of global warming policy have been performed at the national level. However, national averages obscure the fact that some regions may be affected much more than others. We formulated a regional computable general equilibrium model to analyze the impact of a carbon tax on the Pennsylvania economy. The model incorporates special features relating to labor mobility, trade and energy substitution for this purpose. Our results indicate significant negative overall impacts on the Pennsylvania economy, primarily because it is a major producer and user of fossil fuels, especially coal, and because it is highly industrialized. Sensitivity analyses on key parameters and model assumptions indicate that our results are robust. Copyright 1995 by Taylor and Francis Group

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Article provided by Taylor and Francis Journals in its journal Economic Systems Research.

Volume (Year): 7 (1995)
Issue (Month): 2 ()
Pages: 151-71
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Handle: RePEc:taf:ecsysr:v:7:y:1995:i:2:p:151-71

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  1. Saveyn Bert & Van Regemorter Denise, 2007. "Environmental Policy in a Federal State - A Regional CGE Analysis of the NEC Directive in Belgium," Energy, Transport and Environment Working Papers Series ete0701, Katholieke Universiteit Leuven, Centrum voor Economische Studiƫn, Energy, Transport and Environment. [Downloadable!]
  2. Karen Turner, 2008. "A Computable General Equilibrium Analysis of the Relative Price Sensitivity Required to Induce Rebound Effects in Response to an Improvement in Energy Efficiency in the UK Economy," Working Papers 08-07, University of Strathclyde Business School, Department of Economics. [Downloadable!]
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