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Co-Benefits of Climate Change Mitigation Policies: Literature Review and New Results

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  • Johannes Bollen
  • Bruno Guay
  • Stéphanie Jamet
  • Jan Corfee-Morlot

Abstract

There are local air pollution benefits from pursuing greenhouse gases emissions mitigation policies, which lower the net costs of emission reductions and thereby may strengthen the incentives to participate in a global climate change mitigation agreement. The main purpose of this paper is to assess the extent to which local air pollution co-benefits can lower the cost of climate change mitigation policies in OECD and non-OECD countries and can offer economic incentives for developing countries to participate in a post- 2012 global agreement. The paper sets out an analytical framework to answer these questions. After a literature review on the estimates of the co-benefits, new estimates, which are obtained within a general equilibrium, dynamic, multi-regional framework, are presented. The main conclusion is that the co-benefits from climate change mitigation in terms of reduced outdoor local air pollution might cover a significant part of the cost of action. Nonetheless, they alone may not provide sufficient participation incentives to large developing countries. This is partly because direct local air pollution control policies appear to be typically cheaper than indirect action via greenhouse gases emissions mitigation. Les bénéfices connexes des politiques d'atténuation du changement climatique : Revue de la littérature et nouveaux résultats Les politiques de réduction des émissions de gaz à effet de serre ont des bénéfices en termes de pollution atmosphérique locale, ce qui diminue le coût net de ces politiques et ainsi renforce les incitations à participer à un accord mondial d'atténuation du changement climatique. Le principal objectif de ce document est d'évaluer dans quelle mesure les bénéfices connexes sur la pollution atmosphérique locale peuvent, d'une part réduire le coût des politiques d'atténuation du changement climatique dans les pays de l'OCDE et dans les pays en dehors de l'OCDE et d'autre part fournir des incitations économiques aux pays en développement à participer à un accord mondial pour l'après 2012. Le document établit un cadre d'analyse pour répondre à ces questions. Après une revue de la littérature des estimations des bénéfices connexes, de nouvelles estimations, obtenues dans un cadre d'équilibre général dynamique couvrant l'ensemble des régions du monde, sont présentées. La principale conclusion est que les bénéfices connexes de l'action climatique en termes de réduction de la pollution atmosphérique locale couvriraient une part importante du coût des politiques. Néanmoins, à eux seuls, ils seraient insuffisants pour amener les grands pays en développement à participer. Cela tient en partie au fait que l'application de mesures visant directement la pollution atmosphérique locale est généralement meilleur marché qu'une action indirecte via la réduction des émissions de gaz à effet de serre.

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File URL: http://dx.doi.org/10.1787/224388684356
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 693.

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Date of creation: 14 Apr 2009
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Handle: RePEc:oec:ecoaaa:693-en

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Keywords: health; climate change; co-benefits; mitigation policy; local air pollution; pollution atmosphérique locale; politique d'atténuation; bénéfices connexes; changement climatique; santé;

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Cited by:
  1. Stéphane Hallegatte & Jan Corfee-Morlot, 2011. "Understanding climate change impacts, vulnerability and adaptation at city scale: an introduction," Climatic Change, Springer, vol. 104(1), pages 1-12, January.
  2. Carlo Carraro & Valentina Bosetti & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The incentives to participate in and the stability of international climate coalitions: a game theoretic approach using the WITCH Model," Working Papers 2009_28, Department of Economics, University of Venice "Ca' Foscari".
  3. Rob Aalbers & Victoria Shestalova & Viktoria Kocsis, 2012. "Innovation policy for directing technical change in the power sector," CPB Discussion Paper 223, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Ian Rowlands, 2011. "Ancillary impacts of energy-related climate change mitigation options in Africa’s least developed countries," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 16(7), pages 749-773, October.
  5. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Emanuele Massetti & Massimo Tavoni, 2011. "Incentives and Stability of International Climate Coalitions: An Integrated Assessment," Working Papers 2011.97, Fondazione Eni Enrico Mattei.
  6. Johannes Bollen & Corjan Brink (PBL), 2012. "Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies," CPB Discussion Paper 220, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The Incentives to Participate in, and the Stability of, International Climate Coalitions: A Game-theoretic Analysis Using the Witch Model," Working Papers 2009.64, Fondazione Eni Enrico Mattei.
  8. Carlo Carraro, 2009. "The Road to Copenhagen: What Agreement Can Actually Be Effective and Stable? by Carlo Carraro," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 10(3), pages 30-36, October.
  9. Aalbers, Rob & Shestalova, Victoria & Kocsis, Viktória, 2013. "Innovation policy for directing technical change in the power sector," Energy Policy, Elsevier, vol. 63(C), pages 1240-1250.
  10. Muller, Nicholas Z., 2012. "The design of optimal climate policy with air pollution co-benefits," Resource and Energy Economics, Elsevier, vol. 34(4), pages 696-722.
  11. Ian Rowlands, 2011. "Co-impacts of energy-related climate change mitigation in Africa’s least developed countries: the evidence base and research needs," LSE Research Online Documents on Economics 37575, London School of Economics and Political Science, LSE Library.
  12. Christina Zapata & Nicholas Muller & Michael Kleeman, 2013. "PM 2.5 co-benefits of climate change legislation part 1: California’s AB 32," Climatic Change, Springer, vol. 117(1), pages 377-397, March.
  13. Ian H. Rowlands, 2011. "Co-impacts of energy-related climate change mitigation in Africa’s least developed countries: the evidence base and research needs," Grantham Research Institute on Climate Change and the Environment Working Papers 39, Grantham Research Institute on Climate Change and the Environment.

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