IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v8y2021i1d10.1057_s41599-020-00698-2.html
   My bibliography  Save this article

The COVID-19 effect on the Paris agreement

Author

Listed:
  • John M. Reilly

    (Massachusetts Institute of Technology)

  • Y.-H. Henry Chen

    (Massachusetts Institute of Technology)

  • Henry D. Jacoby

    (Massachusetts Institute of Technology)

Abstract

The pandemic and efforts to control it are causing sharp reductions in global economic activity and associated fossil energy use, with unknown influence on longer-term efforts to limit greenhouse gas emissions under the Paris Climate Agreement. To explore this effect, estimates of economic recession and recovery in near-term months are extended to cover a return to full employment in future years, to be compared with an estimate of growth had COVID-19 not occurred. On the assumption that the Paris emissions pledges for 2020 will be met in any case, projection of global emissions with and without the pandemic show that, through its growth impact alone, it will yield only a small effect on emissions in 2030 and beyond. Other COVID legacies may include residual influences in patterns of consumption and travel, and the direction of recovery funds to low carbon investments. Most important, however, will be the effect of the economic shocks on the willingness of nations to meet (or augment) their existing Paris emissions pledges. The main effect of the pandemic on the threat of climate change, therefore, will be not its growth impact but its influence on national commitments to action.

Suggested Citation

  • John M. Reilly & Y.-H. Henry Chen & Henry D. Jacoby, 2021. "The COVID-19 effect on the Paris agreement," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-4, December.
  • Handle: RePEc:pal:palcom:v:8:y:2021:i:1:d:10.1057_s41599-020-00698-2
    DOI: 10.1057/s41599-020-00698-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-020-00698-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41599-020-00698-2?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Congressional Budget Office, 2020. "Interim Economic Projections for 2020 and 2021," Reports 56351, Congressional Budget Office.
    2. Engen, Eric M. & Skinner, Jonathan, 1996. "Taxation and Economic Growth," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(4), pages 617-642, December.
    3. World Bank, 2020. "Global Economic Prospects, June 2020," World Bank Publications - Books, The World Bank Group, number 33748, December.
    4. Congressional Budget Office, 2020. "The Effects of Pandemic-Related Legislation on Output," Reports 56537, Congressional Budget Office.
    5. Chen, Y.-H. Henry & Paltsev, Sergey & Reilly, John M. & Morris, Jennifer F. & Babiker, Mustafa H., 2016. "Long-term economic modeling for climate change assessment," Economic Modelling, Elsevier, vol. 52(PB), pages 867-883.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Negri, Valentina & Galán-Martín, Ángel & Pozo, Carlos & Fajardy, Mathilde & Reiner, David M. & Mac Dowell, Niall & Guillén-Gosálbez, Gonzalo, 2021. "Life cycle optimization of BECCS supply chains in the European Union," Applied Energy, Elsevier, vol. 298(C).
    2. Piotr Jurga & Efstratios Loizou & Stelios Rozakis, 2021. "Comparing Bioeconomy Potential at National vs. Regional Level Employing Input-Output Modeling," Energies, MDPI, vol. 14(6), pages 1-17, March.
    3. Salman, Muhammad & Long, Xingle & Wang, Guimei & Zha, Donglan, 2022. "Paris climate agreement and global environmental efficiency: New evidence from fuzzy regression discontinuity design," Energy Policy, Elsevier, vol. 168(C).
    4. Xiao Yu & Yingdong Xu & Jian Zhang & Yue Sun, 2022. "The Synergy Green Innovation Effect of Green Innovation Subsidies and Carbon Taxes," Sustainability, MDPI, vol. 14(6), pages 1-27, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arvin, Mak B. & Pradhan, Rudra P. & Nair, Mahendhiran S., 2021. "Are there links between institutional quality, government expenditure, tax revenue and economic growth? Evidence from low-income and lower middle-income countries," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 468-489.
    2. Marco Alfò & Lorenzo Carbonari & Giovanni Trovato, 2020. "On the Effects of Taxation on Growth: an Empirical Assessment," CEIS Research Paper 480, Tor Vergata University, CEIS, revised 08 May 2020.
    3. NANTOB, N'Yilimon, 2014. "Taxation and Economic Growth : An Empirical Analysis on Dynamic Panel Data of WAEMU Countries," MPRA Paper 61370, University Library of Munich, Germany, revised 30 Jan 2015.
    4. Debasis Bandyopadhyay & Xueli Tang, 2011. "Parental nurturing and adverse effects of redistribution," Journal of Economic Growth, Springer, vol. 16(1), pages 71-98, March.
    5. Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001. "Personal Income Taxes and the Growth of Small Firms," NBER Chapters, in: Tax Policy and the Economy, Volume 15, pages 121-148, National Bureau of Economic Research, Inc.
    6. Martin Zagler & Georg Dürnecker, 2003. "Fiscal Policy and Economic Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 397-418, July.
    7. Lutz Hendricks, 2001. "Growth, Death, and Taxes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(1), pages 26-57, January.
    8. Sarah Nizamani, 2020. "Higher Taxes Reduce Economic Growth: Overwhelming International Evidence," PIDE Knowledge Brief 2020:14, Pakistan Institute of Development Economics.
    9. Nicholas Apergis, 2015. "Labor Income Tax and Output in a Panel of Central and Eastern European Countries: A Long-Run Perspective," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 1-12, March.
    10. Wang, David Han-Min, 2007. "Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 380(C), pages 278-286.
    11. Ekpeyong, Paul & Adewoyin, David, 2023. "Financial development, taxation and economic growth in sub-sahara africa," MPRA Paper 117739, University Library of Munich, Germany.
    12. Emmanuel Dodzi K. Havi & Patrick Enu, 2014. "The Effect of Fiscal Policy and Monetary Policy on Ghana’s Economic Growth: Which Policy Is More Potent?," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(2), pages 61-75.
    13. Morris M. Kleiner & Hwikwon Ham, 2002. "Do Industrial Relations Institutions Impact Economic Outcomes?: International and U.S. State-Level Evidence," NBER Working Papers 8729, National Bureau of Economic Research, Inc.
    14. Patrick Minford & David Meenagh & Jiang Wang, 2006. "Testing a Simple Structural Model of Endogenous Growth," CDMA Conference Paper Series 0606, Centre for Dynamic Macroeconomic Analysis.
    15. Fu-Sheng Hung & Chien-Chiang Lee, 2010. "Asymmetric Information, Government Fiscal Policies, and Financial Development," Economic Development Quarterly, , vol. 24(1), pages 60-73, February.
    16. Dwi Orbaningsih & Agus Eko Sujianto, 2022. "The Impact of Tax Revenue on Economic Growth: Evidence from Indonesia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 693-697, May.
    17. Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 1998. "Entrepreneurs, Income Taxes, and Investment," NBER Working Papers 6374, National Bureau of Economic Research, Inc.
    18. Mihail N. Diakomihalis & Athina Politou, 2018. "Could the Greek Taxation Policy Pull the Economy from the Recession to Development?," Business and Economic Research, Macrothink Institute, vol. 8(3), pages 50-73, September.
    19. repec:eee:labchp:v:3:y:1999:i:pc:p:3029-3084 is not listed on IDEAS
    20. Emilian DOBRESCU, 2016. "Controversies over the Size of the Public Budget," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-34, December.
    21. Uche Boniface Ugwuanyi & Okelue David Ugwunta, 2017. "Fiscal Policy and Economic Growth: An Examination of Selected Countries in Sub-Saharan Africa," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 117-130, January.

    More about this item

    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:pal:palcom:v:8:y:2021:i:1:d:10.1057_s41599-020-00698-2. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.