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Ancillary Benefits of Climate Policy

Author

Listed:
  • Anil Markandya

    (FEEM, ECSSD, The World Bank Group, Washington D.C., USA)

  • Dirk T.G. Rübbelke

    (Department of Economics, Chemnitz University of Technology Chemnitz, Germany)

Abstract

The benefits of climate policy normally consist exclusively of the reduced impacts of climate change, i.e., the policy’s primary aim. Our analysis of benefits of climate policy suggests, however, that researchers and policymakers should also take account of ancillary benefits, e.g., in the shape of improved air quality induced by climate protection measures. A consideration of both, primary and ancillary benefits, has a positive influence on global climate protection efforts, e.g., because the regional impact of ancillary effects attenuates easy-riding motives of countries with respect to their provision of climate protection. In this article, we analyze the nature of ancillary benefits, present an overview of European assessment studies and explain possible methods to estimate ancillary benefits. Main differences between primary and ancillary benefits are pointed out. Furthermore, we stress the major influences of ancillary benefits on climate policy. Finally, we present one of the first models integrating primary and ancillary benefits. By this model quantitative results are calculated with respect to ancillary benefits in the UK considering different green-house gas (GHG) control levels. It is observed that the ancillary benefits could cover about 4 percent of the full GHG reduction cost.

Suggested Citation

  • Anil Markandya & Dirk T.G. Rübbelke, 2003. "Ancillary Benefits of Climate Policy," Working Papers 2003.105, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2003.105
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    Citations

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    Cited by:

    1. Michael Finus & Dirk T.G. Rübbelke, 2008. "Coalition Formation and the Ancillary Benefits of Climate Policy," Working Papers 2008.62, Fondazione Eni Enrico Mattei.
    2. Giovanni Marin & Massimiliano Mazzanti, 2009. "The dynamics of delinking in industrial emissions: The role of productivity, trade and R&D," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 91-117.
    3. Hubertus Bardt, 2005. "Klimaschutz und Anpassung: Merkmale unterschiedlicher Politikstrategien," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(2), pages 259-269.
    4. Pittel, Karen & Rübbelke, Dirk T.G., 2008. "Climate policy and ancillary benefits: A survey and integration into the modelling of international negotiations on climate change," Ecological Economics, Elsevier, vol. 68(1-2), pages 210-220, December.
    5. Grazi, Fabio & van den Bergh, Jeroen C.J.M., 2008. "Spatial organization, transport, and climate change: Comparing instruments of spatial planning and policy," Ecological Economics, Elsevier, vol. 67(4), pages 630-639, November.

    More about this item

    Keywords

    Climate Policy; Ancillary Benefits; Pollution Control;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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