Adaptation and mitigation in long-term climate policies
The paper analytically explores the optimal policy mix between mitigation and environmental adaptation against climate change at a macroeconomic level. The constructed economic- environmental model is formulated as a social planner problem with the adaptation and abatement investments as separate decision variables. The authors prove the existence of a unique steady state and provide a comparative static analysis of the optimal investment. It leads to essential implications for associated long-term environmental policies. In particular, the dependence of the optimal ratio between abatement and adaptation investments on economic efficiency appears to have an inverted U-shape. Data calibration and numerical simulation are provided to illustrate theoretical outcomes.
|Date of creation:||01 Oct 2010|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elbasha, Elamin H. & Roe, Terry L., 1995.
"On Endogenous Growth: The Implications of Environmental Externalities,"
7493, University of Minnesota, Economic Development Center.
- Elbasha, Elamin H. & Roe, Terry L., 1996. "On Endogenous Growth: The Implications of Environmental Externalities," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 240-268, September.
- Raymond Gradus & Sjak Smulders, 1993.
"The trade-off between environmental care and long-term growth—Pollution in three prototype growth models,"
Journal of Economics,
Springer, vol. 58(1), pages 25-51, February.
- Smulders, J.A. & Gradus, R.H.J.M., 1993. "The trade-off between environmental care and long-term growth : Pollution in three proto-type growth models," Other publications TiSEM f3ec6de7-f996-4ac0-b872-0, Tilburg University, School of Economics and Management.
- BOUCEKKINE, Raouf & HRITONENKO, Natali & YATSENKO, Yuri, 2008.
"Optimal firm behavior under environmental constraints,"
CORE Discussion Papers
2008024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Raouf Boucekkine & Natali Hritonenko & Yuri Yatsenko, "undated". "Optimal Firm Behavior under Environmental Constraints," Working Papers 2008_11, Business School - Economics, University of Glasgow.
- Raouf, BOUCEKKINE & Natali, HRITONENKO & Yuri, YATSENKO, 2008. "Optimal firm behavior under environmental constraints," Discussion Papers (ECON - Département des Sciences Economiques) 2008017, Université catholique de Louvain, Département des Sciences Economiques.
- Larry E. Jones & Rodolfo E. Manuelli, 2001.
"Endogenous Policy Choice: The Case of Pollution and Growth,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 369-405, July.
- Beverly Hirtle, 2008. "Credit derivatives and bank credit supply," Staff Reports 276, Federal Reserve Bank of New York.
- Larry E. Jones & Rodolfo E. Manuelli, 2000. "Endogenous policy choice: the case of pollution and growth," Staff Report 276, Federal Reserve Bank of Minneapolis.
- Lans Bovenberg, A. & Smulders, Sjak, 1995.
"Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model,"
Journal of Public Economics,
Elsevier, vol. 57(3), pages 369-391, July.
- Bovenberg, A.L. & Smulders, J.A., 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Other publications TiSEM 6784bb12-71fb-45a5-bf7e-8, Tilburg University, School of Economics and Management.
- Smulders, J.A. & Gradus, R.H.J.M., 1996.
"Pollution abatement and long-term growth,"
Other publications TiSEM
1ed65010-f4ac-4a1f-84b6-4, Tilburg University, School of Economics and Management.
- Bovenberg, A.L. & Smulders, J.A., 1994.
"Transitional impact of environmental policy in an endogenous growth model,"
1994-50, Tilburg University, Center for Economic Research.
- Bovenberg, A Lans & Smulders, Sjak A, 1996. "Transitional Impacts of Environmental Policy in an Endogenous Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 861-893, November.
- Bovenberg, A.L. & Smulders, J.A., 1996. "Transitional impacts of environmental policy in an endogenous growth model," Other publications TiSEM e002b2ed-f04f-4ffc-98f8-0, Tilburg University, School of Economics and Management.
- Kelly C. de Bruin & Rob B. Dellink & Richard S.J. Tol, 2007.
"AD-DICE: An Implementation of Adaptation in the DICE Mode,"
2007.51, Fondazione Eni Enrico Mattei.
- Kelly C. de Bruin & Rob B. Dellink & Richard S.J. Tol, 2007. "AD-DICE: an implementation of adaptation in the DICE model," Working Papers FNU-126, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2007.
- Toman, Michael & Withagen, Cees, 1998.
"Accumulative Pollution, "Clean Technology," and Policy Design,"
dp-98-43, Resources For the Future.
- Toman, Michael A. & Withagen, Cees, 2000. "Accumulative pollution, "clean technology," and policy design," Resource and Energy Economics, Elsevier, vol. 22(4), pages 367-384, October.
- Thomas F. Cosimano, 2003. "Optimal Experimentation and the Perturbation Method," Computing in Economics and Finance 2003 71, Society for Computational Economics.
- Wagener, F.O.O., 2004. "Skiba points for small discount rates," CeNDEF Working Papers 04-09, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
- Zmarak Shalizi & Franck Lecocq, 2010. "To Mitigate or to Adapt: Is that the Question? Observations on an Appropriate Response to the Climate Change Challenge to Development Strategies," World Bank Research Observer, World Bank Group, vol. 25(2), pages 295-321, August.
- George Economides & Apostolis Philippopoulos, 2008. "Growth enhancing policy is the means to sustain the environment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 207-219, January.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2010065. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.