Economic Growth and CO2 Emissions with Endogenous Emission Regulations: A Computable General Equilibrium Analysis
AbstractIt is widely known that emissions of greenhouse gases from anthropogenic activities have been dramatically increasing at the unprecedented rate over the past several decades, and causing the global climate change. To assess the future trends of such global climate change, it is necessary to project future greenhouse gas emissions. In this paper, we explore the effects of further economic growth on CO2 emissions with the use of a multi-sector, multi-region global CGE model, and with explicit consideration to the endogeneity of emission regulations, i.e. the dependence of regulations on the level of income. The relationship between income level and emission regulations are derived from the consequence of the Kyoto Protocol type emission regulations. Our main finding is summarized as follows. Carbon taxes rise in all regions with economic growth because all regions, especially LDC regions, enjoy the rise in per capita income. However, the responsiveness of carbon taxes to income change is too weak to restrain the increase in emissions. In other words, given the degree of the responsiveness of regulations inferred from the acceptance of the Kyoto Protocol type regulations, carbon emissions are likely to increase all over the world along with further economic growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2002-03.
Length: 34 p.
Date of creation: May 2002
Date of revision:
The environmental Kuznets curve; CO2 emissions; carbon tax; endogenousregulation; economic growth;
Find related papers by JEL classification:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.