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Co-Benefits of Climate Change Mitigation Policies: Literature Review and New Results

Author

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  • Johannes Bollen

    (Netherlands Environmental Assessment Agency)

  • Bruno Guay
  • Stéphanie Jamet

    (OECD)

  • Jan Corfee-Morlot

    (OECD)

Abstract

There are local air pollution benefits from pursuing greenhouse gases emissions mitigation policies, which lower the net costs of emission reductions and thereby may strengthen the incentives to participate in a global climate change mitigation agreement. The main purpose of this paper is to assess the extent to which local air pollution co-benefits can lower the cost of climate change mitigation policies in OECD and non-OECD countries and can offer economic incentives for developing countries to participate in a post- 2012 global agreement. The paper sets out an analytical framework to answer these questions. After a literature review on the estimates of the co-benefits, new estimates, which are obtained within a general equilibrium, dynamic, multi-regional framework, are presented. The main conclusion is that the co-benefits from climate change mitigation in terms of reduced outdoor local air pollution might cover a significant part of the cost of action. Nonetheless, they alone may not provide sufficient participation incentives to large developing countries. This is partly because direct local air pollution control policies appear to be typically cheaper than indirect action via greenhouse gases emissions mitigation. Les bénéfices connexes des politiques d'atténuation du changement climatique : Revue de la littérature et nouveaux résultats Les politiques de réduction des émissions de gaz à effet de serre ont des bénéfices en termes de pollution atmosphérique locale, ce qui diminue le coût net de ces politiques et ainsi renforce les incitations à participer à un accord mondial d'atténuation du changement climatique. Le principal objectif de ce document est d'évaluer dans quelle mesure les bénéfices connexes sur la pollution atmosphérique locale peuvent, d'une part réduire le coût des politiques d'atténuation du changement climatique dans les pays de l'OCDE et dans les pays en dehors de l'OCDE et d'autre part fournir des incitations économiques aux pays en développement à participer à un accord mondial pour l'après 2012. Le document établit un cadre d'analyse pour répondre à ces questions. Après une revue de la littérature des estimations des bénéfices connexes, de nouvelles estimations, obtenues dans un cadre d'équilibre général dynamique couvrant l'ensemble des régions du monde, sont présentées. La principale conclusion est que les bénéfices connexes de l'action climatique en termes de réduction de la pollution atmosphérique locale couvriraient une part importante du coût des politiques. Néanmoins, à eux seuls, ils seraient insuffisants pour amener les grands pays en développement à participer. Cela tient en partie au fait que l'application de mesures visant directement la pollution atmosphérique locale est généralement meilleur marché qu'une action indirecte via la réduction des émissions de gaz à effet de serre.

Suggested Citation

  • Johannes Bollen & Bruno Guay & Stéphanie Jamet & Jan Corfee-Morlot, 2009. "Co-Benefits of Climate Change Mitigation Policies: Literature Review and New Results," OECD Economics Department Working Papers 693, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:693-en
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    File URL: http://dx.doi.org/10.1787/224388684356
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    1. Jenkins, Jesse D., 2014. "Political economy constraints on carbon pricing policies: What are the implications for economic efficiency, environmental efficacy, and climate policy design?," Energy Policy, Elsevier, vol. 69(C), pages 467-477.
    2. Bollen, Johannes & Brink, Corjan, 2014. "Air pollution policy in Europe: Quantifying the interaction with greenhouse gases and climate change policies," Energy Economics, Elsevier, vol. 46(C), pages 202-215.
    3. Muller, Nicholas Z., 2012. "The design of optimal climate policy with air pollution co-benefits," Resource and Energy Economics, Elsevier, vol. 34(4), pages 696-722.
    4. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The Incentives to Participate in and the Stability of International Climate Coalitions: A Game-Theoretic Approach Using the WITCH Model," OECD Economics Department Working Papers 702, OECD Publishing.
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    6. Diederich, Johannes & Goeschl, Timo, 2017. "Does Mitigation Begin At Home?," Working Papers 0634, University of Heidelberg, Department of Economics.
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    12. Bollen, Johannes, 2015. "The value of air pollution co-benefits of climate policies: Analysis with a global sector-trade CGE model called WorldScan," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 178-191.
    13. Bosetti, Valentina & Carraro, Carlo & De Cian, Enrica & Massetti, Emanuele & Tavoni, Massimo, 2013. "Incentives and stability of international climate coalitions: An integrated assessment," Energy Policy, Elsevier, vol. 55(C), pages 44-56.
    14. Walter Vergara & Ana R. Rios & Luis Miguel Galindo Paliza & Pablo Gutman & Paul Isbell & Paul Hugo Suding & Joseluis Samaniego, 2013. "The Climate and Development Challenge for Latin America and the Caribbean: Options for Climate-Resilient, Low-Carbon Development," IDB Publications (Books), Inter-American Development Bank, number 80518, February.
    15. Moroni, Stefano & Antoniucci, Valentina & Bisello, Adriano, 2016. "Energy sprawl, land taking and distributed generation: towards a multi-layered density," Energy Policy, Elsevier, vol. 98(C), pages 266-273.
    16. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The Incentives to Participate in, and the Stability of, International Climate Coalitions: A Game-theoretic Analysis Using the Witch Model," Working Papers 2009.64, Fondazione Eni Enrico Mattei.
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    20. Mrkajic, Vladimir & Vukelic, Djordje & Mihajlov, Andjelka, 2015. "Reduction of CO2 emission and non-environmental co-benefits of bicycle infrastructure provision: the case of the University of Novi Sad, Serbia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 232-242.
    21. Alain Serres & Fabrice Murtin, 2016. "Your Money or Your Life: Green Growth Policies and Welfare in 2050," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 571-590, March.
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    24. Christina Zapata & Nicholas Muller & Michael Kleeman, 2013. "PM 2.5 co-benefits of climate change legislation part 1: California’s AB 32," Climatic Change, Springer, vol. 117(1), pages 377-397, March.

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    Keywords

    bénéfices connexes; changement climatique; climate change; co-benefits; health; local air pollution; mitigation policy; politique d'atténuation; pollution atmosphérique locale; santé;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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