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Pollution Abatement in the Netherlands: A Dynamic Applied General Equilibrium Assessment


  • Rob Dellink

    (Environmental Economics and Natural Resources Group,Wageningen University)

  • Ekko van Ierland

    (Environmental Economics and Natural Resources Group,Wageningen University)


This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between pollution and abatement and the characteristics of abatement goods. The results show that an absolute decoupling of economy and environment is possible. Smog formation is the most costly environmental theme, due to the absence of technical abatement options. For all environmental themes, the least-cost way to reduce emissions is via a combination of technical abatement measures and substantial economic restructuring.

Suggested Citation

  • Rob Dellink & Ekko van Ierland, 2004. "Pollution Abatement in the Netherlands: A Dynamic Applied General Equilibrium Assessment," Working Papers 2004.74, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2004.74

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    References listed on IDEAS

    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    2. Rasmussen, Tobias N., 2001. "CO2 abatement policy with learning-by-doing in renewable energy," Resource and Energy Economics, Elsevier, vol. 23(4), pages 297-325, October.
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    5. Dellink, Rob & Hofkes, Marjan & van Ierland, Ekko & Verbruggen, Harmen, 2004. "Dynamic modelling of pollution abatement in a CGE framework," Economic Modelling, Elsevier, vol. 21(6), pages 965-989, December.
    6. Bohringer, Christoph & Welsch, Heinz, 2004. "Contraction and Convergence of carbon emissions: an intertemporal multi-region CGE analysis," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 21-39, January.
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    13. Gerlagh, Reyer & Dellink, Rob & Hofkes, Marjan & Verbruggen, Harmen, 2002. "A measure of sustainable national income for the Netherlands," Ecological Economics, Elsevier, vol. 41(1), pages 157-174, April.
    14. Koopmans, Carl C. & te Velde, Dirk Willem, 2001. "Bridging the energy efficiency gap: using bottom-up information in a top-down energy demand model," Energy Economics, Elsevier, vol. 23(1), pages 57-75, January.
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    Cited by:

    1. Tol, Richard S.J., 2009. "Intra- and extra-union flexibility in meeting the European Union's emission reduction targets," Energy Policy, Elsevier, vol. 37(11), pages 4329-4336, November.
    2. Hodjat Ghadimi, 2007. "Global Impact of Energy Use in Middle East Oil Economies: A Modeling Framework for Analyzing Technology-Energy-Environment-Economy Chain," Working Papers Working Paper 2007-05, Regional Research Institute, West Virginia University.
    3. Wiepke Wissema & Rob Dellink, 2010. "AGE assessment of interactions between climate change policy instruments and pre-existing taxes: the case of Ireland," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 46-62.
    4. repec:rri:wpaper:200802 is not listed on IDEAS
    5. Hodjat Ghadimi, 2008. "Energy in a Resource-based Regional Economy: A Dynamic General Equilibrium Analysis," Working Papers Working Paper 2008-02, Regional Research Institute, West Virginia University.
    6. Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
    7. repec:rri:wpaper:200705 is not listed on IDEAS

    More about this item


    Applied general equilibrium; Pollution abatement; Dynamics; Environmental policy; Netherlands;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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