IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v145y2025ics0140988325002762.html
   My bibliography  Save this article

Balancing climate policies and economic development in the Mediterranean countries

Author

Listed:
  • Castellini, Marta
  • Castelli, Chiara
  • Gusperti, Camilla
  • Lupi, Veronica
  • Vergalli, Sergio

Abstract

The goal of this work is to improve the spatial representation of the Regional Dynamic Integrated model of Climate and the Economy (RICE), focusing on the Mediterranean countries, as this area is considered as an hot-spot for climate change. The model is updated with a 2015 base year calibration, providing projections till the end of the century We evaluate the impact of climate damages and temperature changes in several scenarios, drawing comparisons across regions. Due to the analytical structure of the model, which considers energy as an explicit input factor, we examine macroeconomic and energy indicators across regions. We find that limiting temperature increase up to 2 °C with respect to pre-industrial levels requires a carbon tax/social cost of carbon of more than USD 200/tC by 2055, doubling by the end of this century, with countries belonging to lower-income regions and those in the southern part of the Mediterranean facing the most severe consequences in terms of economic losses. Our results are embedded in a framework showing the costs of delaying the energy transition. Our figures rely on fossil-fuel inputs for energy production and exogenous technological change.

Suggested Citation

  • Castellini, Marta & Castelli, Chiara & Gusperti, Camilla & Lupi, Veronica & Vergalli, Sergio, 2025. "Balancing climate policies and economic development in the Mediterranean countries," Energy Economics, Elsevier, vol. 145(C).
  • Handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325002762
    DOI: 10.1016/j.eneco.2025.108452
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325002762
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2025.108452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    IAMs; Climate change; Social cost of carbon; Emissions; Temperature; Energy; Mediterranean region; Mediterranean countries;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325002762. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.