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Benchmarking the Future: A Dynamic, Multi-Regional, Multi-Sectoral Trade Model for the Analysis of Climate Policies

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  • Gernot Klepper
  • Katrin Springer
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    Abstract

    For analyzing the impact of climate change and of international climate policies on the international division of labor and on regional welfare the use of a disaggregated multi–sectoral, multi–regional dynamic computable general equilibrium model is appropriate. This paper discusses the problems of defining an appropriate benchmark against which policy simulations and climate change impacts can be assessed. It explicitly considers regionally differentiated growth rates by basing the development of the parameters which determine human and physical capital growth, technical progress and technology diffusion as well as savings decisions on historical developments and estimates in the literature. A sensitivity analysis of important parameters is performed.

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    File URL: http://www.ifw-members.ifw-kiel.de/publications/benchmarking-the-future-a-dynamic-multi-regional-multi-sectoral-trade-model-for-the-analysis-of-climate-policies/kap976.pdf
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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 976.

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    Length: 70 pages
    Date of creation: Apr 2000
    Date of revision:
    Handle: RePEc:kie:kieliw:976

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    Related research

    Keywords: Off-Steady-State Growth; Human Capital; Physical Capital; Calibration; Energy Supply; GTAP Data Set;

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    1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
    2. Robert E. Hall & Charles I. Jones, . "The Productivity of Nations," Working Papers 96012, Stanford University, Department of Economics.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    4. Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-37, July.
    5. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    6. Springer, Katrin, 1998. "The DART general equilibrium model: A technical description," Kiel Working Papers 883, Kiel Institute for the World Economy.
    7. Gregory Mankiw, 1995. "The Growth of Nations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 275-326.
    8. Christiane Kurtze & Katrin Springer, 1999. "Modelling the Economic Impact of Global Warming in a General Equilibrium Framework," Kiel Working Papers 922, Kiel Institute for the World Economy.
    9. Schmidt-Hebbel, K. & Serven, L., 1997. "Saving Across the World: Puzzles and Policies," World Bank - Discussion Papers 354, World Bank.
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