IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331875.html
   My bibliography  Save this paper

Capital Malleability and the Macroeconomic Costs of Climate Policy

Author

Listed:
  • Lanzi, Elisa
  • Wing, Ian Sue

Abstract

This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The issue is explored by means of a theoretical model, a numerical analysis and a computable general equilibrium (CGE) model. Considering the three approaches together is fundamental in obtaining theory-compatible policy-relevant results. The model outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore, it is important that, especially for the analysis of short-term environmental regulations, the issue of capital malleability is taken into consideration.

Suggested Citation

  • Lanzi, Elisa & Wing, Ian Sue, 2009. "Capital Malleability and the Macroeconomic Costs of Climate Policy," Conference papers 331875, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:331875
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331875/files/4478.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    2. Arndt, Channing & Benfica, Rui & Maximiano, Nelson & Nucifora, Antonio M.D. & Thurlow, James, 2008. "Higher fuel and food prices: Economic impacts and responses for Mozambique," IFPRI discussion papers 836, International Food Policy Research Institute (IFPRI).
    3. Benson, Todd & Minot, Nicholas & Pender, John & Robles, Miguel & von Braun, Joachim, 2008. "Global food crises: Monitoring and assessing impact to inform policy responses," Food policy reports 19, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    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. Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2008. "Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana," IFPRI discussion papers 842, International Food Policy Research Institute (IFPRI).
    2. Minot, Nicholas & Dewina, Reno, 2013. "Impact of food price changes on household welfare in Ghana:," IFPRI discussion papers 1245, International Food Policy Research Institute (IFPRI).
    3. Mason, Nicole M. & Jayne, T.S. & Chapoto, Antony & Donovan, Cynthia, 2011. "Putting the 2007/2008 global food crisis in longer-term perspective: Trends in staple food affordability in urban Zambia and Kenya," Food Policy, Elsevier, vol. 36(3), pages 350-367, June.
    4. Omilola, Babatunde & Lambert, Melissa, 2010. "Weathering the storm," IFPRI discussion papers 965, International Food Policy Research Institute (IFPRI).
    5. Arndt, Channing & Østerdal, Lars Peter & Hussain, M. Azhar, 2012. "Effects of Food Price Shocks on Child Malnutrition," WIDER Working Paper Series 089, World Institute for Development Economic Research (UNU-WIDER).
    6. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
    7. Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2010. "Local impacts of a global crisis: Food price transmission, consumer welfare and poverty in Ghana," Food Policy, Elsevier, vol. 35(4), pages 294-302, August.
    8. Dalheimer, Bernhard & Herwartz, Helmut & Lange, Alexander, 2021. "The threat of oil market turmoils to food price stability in Sub-Saharan Africa," Energy Economics, Elsevier, vol. 93(C).
    9. repec:unu:wpaper:wp2012-89 is not listed on IDEAS
    10. Pedro Conceição & Sebastian Levine & Zuzana Brixiova, "undated". "The Food Price Spikes of 2008/09 and 2010/11: Impacts and Policies in African Countries," UNDP Africa Policy Notes 2011-003, United Nations Development Programme, Regional Bureau for Africa.
    11. Cuesta, José & Htenas, Aira & Tiwari, Sailesh, 2014. "Monitoring global and national food price crises," Food Policy, Elsevier, vol. 49(P1), pages 84-94.
    12. Balié, Jean & Minot, Nicholas & Valera, Harold Glenn A., 2021. "Distributional impacts of the rice tariffication policy in the Philippines," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 289-306.
    13. Thurlow James & Tarp Finn & McCoy Simon & Hai Nguyen Manh & Breisinger Clemens & Arndt Channing, 2011. "The Impact of the Global Commodity and Financial Crises on Poverty in Vietnam," Journal of Globalization and Development, De Gruyter, vol. 2(1), pages 1-31, August.
    14. Rudolf, Robert, 2019. "The impact of maize price shocks on household food security: Panel evidence from Tanzania," Food Policy, Elsevier, vol. 85(C), pages 40-54.
    15. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    16. Rui Benfica & Duncan Boughton & Rafael Uaiene & Bordalo Mouzinho, 2017. "Food crop marketing and agricultural productivity in a high price environment: evidence and implications for Mozambique," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1405-1418, December.
    17. Derek Headey & Marie Ruel, 2023. "Food inflation and child undernutrition in low and middle income countries," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    18. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    19. Derek Headey & Sangeetha Malaiyandi & Shenggen Fan, 2010. "Navigating the perfect storm: reflections on the food, energy, and financial crises," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 217-228, November.
    20. Derek D. Headey, 2013. "The Impact of the Global Food Crisis on Self-Assessed Food Security," The World Bank Economic Review, World Bank, vol. 27(1), pages 1-27.
    21. Estrades, Carmen & Terra, María Inés, 2012. "Commodity prices, trade, and poverty in Uruguay," Food Policy, Elsevier, vol. 37(1), pages 58-66.

    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:ags:pugtwp:331875. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.