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Economic Implications of Greenhouse Gas Policy

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  • McKibbin, W.J.
  • Wilcoxen, P.J.

Abstract

This paper summarizes the debate on the costs and benefits of regional and global action to reduce future emissions of greenhouse gases. The paper also presents new evidence on possible future global emissions of carbon dioxide from burning fossil fuels where these emissions are disaggregated by major developed and developing country regions. The basis of the projections is a global simulation model called the G-Cubed model. Given these projections of future emissions, the model is used to estimate the size of carbon taxes necessary to stabilize emissions within each region in the year 2000 at the levels of emissions in 1990. It is shown that the costs of stabilizing carbon dioxide emissions vary across countries when each country stabilizes its own emissions at a 1990 level. These differences in costs reflect differences in the energy intensity of production, differences in the source of energy generation, differences in projections of population growth and different projections of productivity growth.

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Bibliographic Info

Paper provided by Brookings Institution - Working Papers in its series Papers with number 116.

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Length: 40 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:fth:brooki:116

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Postal: THE BROOKINGS INSTITUTION, 1775 MASSACHUSETTS AVE N.W. WASHINGTON D.C. 20036 U.S.A.
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Web page: http://www.brook.edu/
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Related research

Keywords: POLLUTION; ENVIRONMENT; ECONOMIC POLICY;

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Cited by:
  1. ANDERSON, KYM & McKIBBIN, WARWICK J., 2000. "Reducing coal subsidies and trade barriers: their contribution to greenhouse gas abatement," Environment and Development Economics, Cambridge University Press, vol. 5(04), pages 457-481, October.
  2. McKibbin, Warwick J., 1998. "Greenhouse abatement policy: insights from the G-cubed multi-country model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 42(1), March.
  3. Warwick J. McKibbin, 1998. "International Permit Trading: Creating a Sustainable System," Economics and Environment Network Working Papers 9803, Australian National University, Economics and Environment Network.

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