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Distributional impact of developed countries CC policies on Senegal : A macro-micro CGE application

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Author Info

  • Dorothée Boccanfuso

    ()
    (GREDI, Faculte d'administration, Université de Sherbrooke)

  • Antonio Estache

    ()
    (European Centre for Advanced Research in Economics and Statistics at the Free University of Brussels)

  • Luc Savard

    ()
    (GREDI, Faculte d'administration, Université de Sherbrooke)

Abstract

In this paper we present an analysis of distributional impact analysis of climate change policies envisaged or implemented to reduce greenhouse gasses emissions on Senegal. We consider policies implemented in developed countries (namely the ones engaged in the Kyoto protocol) and their impact on a developing country. Moreover, we simulate a diminishing productivity of land used in agriculture as a potential result of CC for Senegal. This country is exposed to the direct consequences of CC and is vulnerable to changes in world prices of energy given is lack of substitution capacity. According to Winters et al (1998), countries with this profile will bear the greatest burden of CC and its mitigating policies. Our results reveal slight increases in poverty when world price of fossil fuels increase and the negative impact are amplified with decreases in land productivity. However, subsidizing electricity consumption to protect consumers for price world price increases in fossil fuels provides a weak cushion to poverty increase.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0911.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 09-11.

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Length: 28 pages
Date of creation: 22 May 2009
Date of revision:
Handle: RePEc:shr:wpaper:09-11

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Keywords: Global warming; environmental policies; income distribution; developing countries;

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References

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  1. Lars Bergman, 1991. "General equilibrium effects of environmental policy: A CGE-modeling approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 43-61, March.
  2. Hertel, Thomas W. & Reimer, Jeffrey J., 2004. "Predicting the poverty impacts of trade reform," Policy Research Working Paper Series 3444, The World Bank.
  3. Don Fullerton & Garth Heutel, 2005. "The General Equilibrium Incidence of Environmental Taxes," NBER Working Papers 11311, National Bureau of Economic Research, Inc.
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  7. O'Ryan, Ra l & Miller, Sebastian & de Miguel, Carlos J., 2003. "A CGE framework to evaluate policy options for reducing air pollution emissions in Chile," Environment and Development Economics, Cambridge University Press, vol. 8(02), pages 285-309, May.
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  17. Nanak Kakwani & Hyun H. Son, 2003. "Pro-poor Growth: Concepts and Measurement with Country Case Studies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 417-444.
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Cited by:
  1. Nassima Rabhi, 2012. "Water partial privatization: access and quality consequences for urban areas in Senegal," Post-Print dumas-00811476, HAL.
  2. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.

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