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Impact of Climate Policy on the Basque Economy

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Author Info
Mikel González (University of Basque Country)
Rob Dellink (Wageningen University)

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Abstract

In this paper we 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.

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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.113.

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Date of creation: Sep 2005
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Handle: RePEc:fem:femwpa:2005.113

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Related research
Keywords: Applied general equilibrium; Climate change; Tradable pollution permits; Basque country;

Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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