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Can climate policy enhance sustainability?

Author

Listed:
  • Lorenza Campagnolo

    (Fondazione Eni Enrico Mattei (FEEM) and Fondazione CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Carlo Carraro

    (Fondazione CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici and Ca’ Foscari University of Venice)

  • Marinella Davide

    (Fondazione CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici and Ca’ Foscari University of Venice)

  • Fabio Eboli

    (Fondazione Eni Enrico Mattei (FEEM) and Fondazione CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Elisa Lanzi

    (Fondazione Eni Enrico Mattei (FEEM))

  • Ramiro Parrado

    (Fondazione Eni Enrico Mattei (FEEM) and Fondazione CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici)

Abstract

Implementing an effective climate policy is one of the main challenges for the future. Curbing greenhouse gas emissions can prevent future irreversible impacts of climate change. Climate policy is therefore crucial for present and future generations. Nonetheless, one may wonder whether future economic and social development could be harmed by climate policy. This paper addresses this question by examining recent developments in international climate policy and considering different levels of cooperation that may arise in light of the outcomes of the Conference of the Parties held in Doha. The paper analyses how various climate policy scenarios would enhance sustainability and whether there is a trade-off between climate policy and economic development and social cohesion. This is done by using a new comprehensive indicator, the FEEM Sustainability Index (FEEM SI), which aggregates several economic, social, and environmental indicators. The FEEM SI is built into a recursive-dynamic computable general equilibrium model of the world economy, thus offering the possibility of projecting all indicators into the future and of delivering a perspective assessment of sustainability under different future climate policy scenarios. We find that the environmental component of sustainability improves at the regional and world level thanks to the implementation of climate policies. Overall sustainability increases in all scenarios since the economic and social components are affected negatively yet marginally. This analysis does not include explicitly climate change damages and this may lead to underestimating the benefits of policy actions. If the USA, Canada, Japan and Russia did not contribute to mitigating emissions, sustainability in these countries would decrease and the overall effectiveness of climate policy in enhancing global sustainability would be offset.

Suggested Citation

  • Lorenza Campagnolo & Carlo Carraro & Marinella Davide & Fabio Eboli & Elisa Lanzi & Ramiro Parrado, 2016. "Can climate policy enhance sustainability?," Climatic Change, Springer, vol. 137(3), pages 639-653, August.
    • Handle: RePEc:spr:climat:v:137:y:2016:i:3:d:10.1007_s10584-016-1701-6
    DOI: 10.1007/s10584-016-1701-6
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    Cited by:

    1. Lorenza Campagnolo & Carlo Carraro & Fabio Eboli & Luca Farnia & Ramiro Parrado & Roberta Pierfederici, 2018. "The Ex-Ante Evaluation of Achieving Sustainable Development Goals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 73-116, February.
    2. Gaspari, Michele & Lorenzoni, Arturo, 2018. "The governance for distributed energy resources in the Italian electricity market: A driver for innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3623-3632.

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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