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Balancing Climate Policies and Economic Development in the Mediterranean Countries

Author

Listed:
  • Chiara Castelli

    (Wiener Institut für Internationale Wirtschaftsvergleiche)

  • Marta Castellini

    (Department of Economics and Management "Marco Fanno", University of Padua and Fondazione Eni Enrico Mattei)

  • Camilla Gusperti

    (Department of Economics and Management, Università degli Studi di Brescia and Fondazione Eni Enrico Mattei)

  • Veronica Lupi

    (Department of Environmental Economics, Institute for Environmental Studies, Vrije Universiteit and Fondazione Eni Enrico Mattei)

  • Sergio Vergalli

    (Department of Economics and Management, Università degli Studi di Brescia and Fondazione Eni Enrico Mattei)

Abstract

The goal of this work is to improve the spatial representation of the Regional Dynamic Integrated model of Climate and the Economy (RICE), in its ’99 version, focusing on the Mediterranean countries, while also updating the calibration to the base year 2015. We evaluate the impact of climate damages and temperature changes in several scenarios, drawing comparisons across regions. Thanks to the theoretical structure of the model, which considers energy as an explicit input factor, we examine macroeconomic and energy indicators across regions. We find that a general slow down in economic growth is needed to decrease emissions and keep temperature change within 2°C by the end of this century. Our results are embedded in a framework showing the costs of delaying the energy transition. Our figures relies on fossil-fuel inputs and exogenous energy saving improvements.

Suggested Citation

  • Chiara Castelli & Marta Castellini & Camilla Gusperti & Veronica Lupi & Sergio Vergalli, 2024. "Balancing Climate Policies and Economic Development in the Mediterranean Countries," Working Papers 2024.20, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2024.20
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    References listed on IDEAS

    as
    1. Richard S.J. Tol, 2011. "The Social Cost of Carbon," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 419-443, October.
    2. Richard S.J. Tol, 2020. "Optimal climate policy," Video Library 2083, Department of Economics, University of Sussex Business School.
    3. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    4. Peter H. Howard & Thomas Sterner, 2017. "Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 197-225, September.
    5. Richard S. J. Tol, 2023. "Social cost of carbon estimates have increased over time," Nature Climate Change, Nature, vol. 13(6), pages 532-536, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    IAMs; climate change; social cost of carbon; emissions; temperature; energy; Mediterranean region; Mediterranean countries;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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