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Effects of international climate policy for India: Evidence from a national and global CGE model

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  • Matthias Weitzel
  • Joydeep Ghosh
  • Sonja Peterson
  • Basanta K. Pradhan

Abstract

In order to reach the two degree target it is necessary to control CO2 emissions also in fast growing emerging economies such as India. The question is how the Indian economy would be affected by e.g. including the country into an international climate regime. Existing analyses with either a global model or a single country computable general equilibrium model miss important aspects such as distributional issues or international repercussions. By soft-linking models of these two classes, we provide a more detailed view on these issues. In particular, we analyze different options of transferring revenues from domestic carbon taxes and international transfers to different household types and how different assumptions on exchange rates affect transfer payments. We also show effects stemming from international price repercussions. Our analysis focusses on how these transmission channels affect welfare of nine different household types

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1810.

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Length: 32 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:kie:kieliw:1810

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Keywords: Computable General Equilibrium Model; International Climate Policy; India;

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  1. Barun Deb Pal & Sanjib Pohit & Joyashree Roy, 2012. "Social Accounting Matrix For India," Economic Systems Research, Taylor & Francis Journals, Taylor & Francis Journals, vol. 24(1), pages 77-99, August.
  2. Fisher-Vanden, K. A. & Shukla, P. R. & Edmonds, J. A. & Kim, S. H. & Pitcher, H. M., 1997. "Carbon taxes and India," Energy Economics, Elsevier, Elsevier, vol. 19(3), pages 289-325, July.
  3. World Bank, 2012. "World Development Indicators 2012," World Bank Publications, The World Bank, number 6014, August.
  4. P. Shukla & Subash Dhar, 2011. "Climate agreements and India: aligning options and opportunities on a new track," International Environmental Agreements: Politics, Law and Economics, Springer, Springer, vol. 11(3), pages 229-243, September.
  5. McKibbin, Warwick J. & Shackleton, Robert & Wilcoxen, Peter J., 1999. "What to expect from an international system of tradable permits for carbon emissions," Resource and Energy Economics, Elsevier, Elsevier, vol. 21(3-4), pages 319-346, August.
  6. Daniel J.A. Johansson & Paul L. Lucas & Matthias Weitzel & Erik O. Ahlgren & A.B. Bazaz & Wenying Chen & Michel G.J. den Elzen & Joydeep Ghosh & Qiao-Mei Liang & Sonja Peterson & Basanta K. Pradhan & , 2012. "Multi-model analyses of the economic and energy implications for China and India in a post-Kyoto climate regime," Kiel Working Papers 1808, Kiel Institute for the World Economy.
  7. Maurizio Bussolo & David O’Connor, 2001. "Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits," OECD Development Centre Working Papers 182, OECD Publishing.
  8. K. Sundaram & Suresh D. Tendulkar, 2003. "Poverty Among Social and Economic Groups In India in the Nineteen Nineties," Working papers, Centre for Development Economics, Delhi School of Economics 118, Centre for Development Economics, Delhi School of Economics.
  9. van Ruijven, Bas J. & Weitzel, Matthias & den Elzen, Michel G.J. & Hof, Andries F. & van Vuuren, Detlef P. & Peterson, Sonja & Narita, Daiju, 2012. "Emission allowances and mitigation costs of China and India resulting from different effort-sharing approaches," Energy Policy, Elsevier, Elsevier, vol. 46(C), pages 116-134.
  10. Warwick J. McKibbin & Martin T. Ross & Robert Shackleton & Peter J. Wilcoxen, 1999. "Emissions Trading, Capital Flows and the Kyoto Protocol," Economics and Environment Network Working Papers, Australian National University, Economics and Environment Network 9901, Australian National University, Economics and Environment Network.
  11. Ojha, Vijay P., 2009. "Carbon emissions reduction strategies and poverty alleviation in India," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 14(03), pages 323-348, June.
  12. Christoph Böhringer & Thomas Rutherford, 2002. "Carbon Abatement and International Spillovers," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 22(3), pages 391-417, July.
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