Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits
AbstractWith the aid of a computable general equilibrium model, this paper estimates for India the magnitude of spillovers from limiting growth of greenhouse gas emissions to local air quality and the health of the urban population. The most important spillovers are reductions in emissions of particulates with associated declines in mortality and morbidity. By valuing these spillovers (or ancillary benefits), we can compare them with the welfare costs of climate policy, estimating that — on conservative assumptions — emissions could be reduced by somewhat more than 10 per cent from their 2010 baseline level without incurring net costs. With central estimates of substitution elasticities and willingness-to-pay for health improvements, “no regrets” abatement could reach around 17-18 per cent of baseline emissions. The analysis also permits assessment of the inter-regional variation in costs and benefits, finding that abatement costs are relatively low and ancillary benefits high in North and ... Ce Document technique propose une estimation des retombées d’une limitation des émissions de gaz à effet de serre sur la qualité de l’air et la santé de la population urbaine en Inde. Il utilise pour ce faire un modèle calculable d’équilibre général. Les retombées les plus notables concernent la réduction des émissions de particules qui se traduit par un recul de la mortalité et de la morbidité. En évaluant ces retombées (ou avantages indirects), les auteurs les comparent avec les coûts pour le bien-être des politiques relatives au changement climatique et estiment — sur la base d’hypothèses conservatoires — que les émissions pourraient être diminuées de quelque 10 pour cent par rapport à leur niveau de base de 2010, sans entraîner de coût net. Si l’on prend en compte les élasticités de substitution et la propension de la population à payer pour améliorer sa santé, alors cette réduction « sans coût » des émissions pourrait atteindre 17-18 pour cent de leur niveau de base pour 2010 ...
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Bibliographic InfoPaper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 182.
Date of creation: Nov 2001
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