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Climate Policy Without Tears: CGE-Based Ancillary Benefits Estimates for Chile

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  • Sébastien Dessus
  • David O’Connor
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    Abstract

    What interest do developing countries have in limiting the growth of their greenhouse gas (GHG) emissions? Answering this question is crucial to moving international climate policy negotiations forward. The primary benefits for individual countries of GHG abatement remain highly uncertain and, in any case, long-term in nature. The costs, on the other hand, are near-term. Using an economy-wide model of Chile, this study examines a hitherto neglected set of benefits from climate policy, viz., the reduction in emissions of local and regional air pollutants and the “ancillary” health benefits, in this case for the people of Santiago, the capital city. These benefits are both near-term and readily captured by the country implementing the policy. Extensive sensitivity analysis is performed in recognition of the uncertainty surrounding certain key parameter and exogenous variable values — notably, Santiago residents’ willingness to pay (WTP) for reduced mortality and morbidity risk, and ... Quel intérêt pourraient avoir les pays en développement à limiter leurs émissions de gaz à effet de serre ? De la réponse à cette question dépend en partie la poursuite des négociations internationales sur la question. Les gains attendus pour chaque pays d’une limitation des gaz à effet de serre restent en effet encore très hypothétiques, et d’horizon lointain. Les coûts, en revanche, sont immédiats. Cette étude tente d’estimer, à l’aide d’un modèle d’équilibre général calculable pour le Chili, le bénéfice souvent négligé d’une politique de contrôle des émissions pour la qualité de l’air à Santiago du Chili, et ses effets associés sur la santé de ses habitants. Les pays adoptant ces politiques peuvent en retirer les bénéfices directement et à court terme. Une large analyse de sensibilité est menée, en raison des incertitudes qui pèsent sur la valeur de certains paramètres clefs. Elle concerne notamment le montant que seraient prêts à payer les habitants de Santiago pour voir ...

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    File URL: http://dx.doi.org/10.1787/255872588381
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 156.

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    Date of creation: Nov 1999
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    Handle: RePEc:oec:devaaa:156-en

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    Cited by:
    1. Sébastien Dessus & David O'Connor, 2003. "Climate Policy without Tears CGE-Based Ancillary Benefits Estimates for Chile," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 287-317, July.
    2. Marianne Zandersen & Mette Termansen & Frank S. Jensen, 2005. "Benefit Transfer over Time of Ecosystem Values: the Case of Forest Recreation," Working Papers FNU-61, Research unit Sustainability and Global Change, Hamburg University, revised Mar 2005.
    3. Farhana Yamin & Jean-Marc Burniaux & Andries Nentjes, 2001. "Kyoto Mechanisms: Key Issues for Policy-makers for COP-6," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 1(2), pages 187-218, April.
    4. Rubbelke, Dirk T.G., 2006. "Climate policy in developing countries and conditional transfers," Energy Policy, Elsevier, vol. 34(13), pages 1600-1610, September.
    5. Rubbelke, Dirk T. G., 2003. "An analysis of differing abatement incentives," Resource and Energy Economics, Elsevier, vol. 25(3), pages 269-294, August.

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