Can Climate Policy Enhance Sustainability?
Implementing an effective climate policy is one of the main challenges for our future. Even though ambitious mitigation targets are necessarily costly, curbing GHG emissions can prevent future irreversible impacts of climate change on human kind and the environment. Climate policy is therefore crucial for present and future generations. Nonetheless, one may wonder whether the economic and social dimensions of future global development could be harmed by climate policy. This paper addresses this question by examining some 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 recently held in Doha. Then it explores whether the implementation of various climate policy scenarios would help enhancing sustainability or rather whether there is a trade-off between climate policy and economic development and/or 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 index is built into a recursive-dynamic Computable General Equilibrium (CGE) model of the world economy, thus offering the possibility of projecting all indicators into the future, and therefore 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 GHG emission reductions achieved through climate policy. However, the economic and social components are affected negatively yet marginally. Hence, overall sustainability increases in all scenarios. If the USA, Canada, Japan and Russia would not contribute to mitigating future GHG emissions, as envisioned in one of our scenarios, sustainability in these countries would decrease and the overall effectiveness of climate policy in enhancing global sustainability would be offset.
|Date of creation:||Jan 2013|
|Contact details of provider:|| Postal: Corso Magenta, 63 - 20123 Milan|
Web page: http://www.feem.it/
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.:
- De Waegenaere, Anja & Wakker, Peter P., 2001. "Nonmonotonic Choquet integrals," Journal of Mathematical Economics, Elsevier, vol. 36(1), pages 45-60, September.
- Carlo Carraro & Valentina Bosetti & Alessandra Sgobbi & Massimo Tavoni, 2008.
"Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?,"
2008_27, Department of Economics, University of Venice "Ca' Foscari".
- Bosetti, Valentina & Carraro, Carlo & Sgobbi, Alessandra & Tavoni, Massimo, 2008. "Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?," CEPR Discussion Papers 6973, C.E.P.R. Discussion Papers.
- Valentina Bosetti & Massimo Tavoni & Carlo Carraro & Alessandra Sgobbi, 2008. "Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?," Working Papers 2008.69, Fondazione Eni Enrico Mattei.
- Valentina Bosetti & Carlo Carraro & Alessandra Sgobbi & Massimo Tavoni, 2008. "Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?," CESifo Working Paper Series 2403, CESifo Group Munich.
- Keywan Riahi & Elmar Kriegler & Nils Johnson & Christoph Bertram & Michel Den Elzen & Jiyong Eom & Michiel Schaeffer & Jae Edmonds & Morna Isaac & Volker Krey & Thomas Longden & Gunnar Luderer & Aurél, 2015. "Locked into Copenhagen pledges -- Implications of short-term emission targets for the cost and feasibility of long-term climate goals," Post-Print halshs-00962366, HAL.
- Böhringer, Christoph & Löschel, Andreas, 2004. "Measuring Sustainable Development: The Use of Computable General Equilibrium Models," ZEW Discussion Papers 04-14, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010.
"Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model,"
Environment and Development Economics,
Cambridge University Press, vol. 15(05), pages 515-533, October.
- Fabio Eboli & Ramiro Parrado & Roberto Roson, 2009. "Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model," Working Papers 2009.43, Fondazione Eni Enrico Mattei.
- Parrado, Ramiro & De Cian, Enrica, 2014.
"Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework,"
Elsevier, vol. 41(C), pages 76-89.
- Ramiro Parrado & Enrica De Cian, 2013. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," EcoMod2013 5426, EcoMod.
- Francesco Bosello & Ramiro Parrado, 2014. "Climate Change Impacts and Market Driven Adaptation: the Costs of Inaction Including Market Rigidities," Working Papers 2014.64, Fondazione Eni Enrico Mattei.
- Caterina Cruciani & Silvio Giove & Mehmet Pinar & Matteo Sostero, 2012.
"Constructing the FEEM Sustainability Index: A Choquet-Integral Application,"
2012.50, Fondazione Eni Enrico Mattei.
- Caterina Cruciani & Silvio Giove & Mehmet Pinar & Matteo Sostero, 2013. "Constructing the FEEM Sustainability Index: A Choquet-integral Application," Working Papers 2013.16, Fondazione Eni Enrico Mattei.
- Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Riahi, Keywan & Kriegler, Elmar & Johnson, Nils & Bertram, Christoph & den Elzen, Michel & Eom, Jiyong & Schaeffer, Michiel & Edmonds, Jae & Isaac, Morna & Krey, Volker & Longden, Thomas & Luderer, Gu, 2015. "Locked into Copenhagen pledges â€” Implications of short-term emission targets for the cost and feasibility of long-term climate goals," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 8-23.
When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2013.10. 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: (barbara racah)
If references are entirely missing, you can add them using this form.