IDEAS home Printed from
   My bibliography  Save this paper

Efficiency and Distribution in Computable Models of Carbon Emission Abatement


  • Joaquim Oliveira Martins
  • Peter Sturm


The separability between efficiency and equity is an underlying assumption in most computable general equilibrium (CGE) models used to assess the costs of carbon abatement. Chichilnisky and Heal (1994) have generated a debate on both the analytical correctness of this hypothesis as well as its precise policy implications. This technical note aims to clarify the determinants of cost efficiency in standard CGE abatement models. Some simulations are provided illustrating the separability property between an efficient outcome and the distribution of income across countries. In the context of an optimal abatement model, it is also shown under which conditions equity and efficiency are not separable anymore ... La séparabilité entre équité et efficacité économique est l’hypothèse de base dans la plupart des modèles d’équilibre général calculable (MEGC) utilisés pour évaluer les coûts de réduction des emissions de carbone. Chichilnisky et Heal (1994) ont provoqué un débat à la fois sur l’exactitude de cette hypothèse et ses implications pour la politique économique. Cette note cherche à clarifier les déterminants de l’efficacité économique dans les MEGC destinés à évaluer les coûts de réduction des émissions de carbone. Des simulations numériques sont fournies à fin d’illustrer la propriété de séparabilité entre efficacité et la distribution des revenus. L’étude montre aussi dans le contexte d’un modèle de reduction optimale des émissions, sous quelles conditions équité et efficacité ne sont plus séparables ...

Suggested Citation

  • Joaquim Oliveira Martins & Peter Sturm, 1998. "Efficiency and Distribution in Computable Models of Carbon Emission Abatement," OECD Economics Department Working Papers 192, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:192-en

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Jean-Marc Burniaux & Joaquim Oliveira Martins, 2012. "Carbon leakages: a general equilibrium view," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 473-495, February.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:192-en. 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: (). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.