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A Welfare Analysis of Climate Change Mitigation Policies

Listed author(s):
  • Alain de Serres


  • Fabrice Murtin


This paper assesses some welfare consequences of climate change mitigation policies. In the same vein as Becker, Philipson and Soares (2005), a simple index of economic progress weighs in the monetary cost induced by mitigation policies as well as the health benefits arising from the reduction in local air pollution. The shadow price of pollution is calculated indirectly through its impact on life expectancy. Taking into account the health benefits of mitigation policies significantly reduces their monetary cost in China and India, as well as in countries with large fossil-based energy-producing sectors (Australia, Canada and the United States). L'impact des politiques d'atténuation du changement climatique sur le bien-être économique Cette étude évalue certaines conséquences des politiques d’atténuation du changement climatique sur le bien-être économique. Suivant l’approche de Becker, Philipson et Soares (2005), un indice de progrès économique est proposé, combinant le coût monétaire des politiques d’abattement d’émissions de gaz à effet de serre ainsi que les bénéfices pour la santé de la réduction de la pollution de l’air qui en découle. Le prix implicite de la pollution est calculé indirectement à travers son impact sur l’espérance de vie. La prise en compte des bénéfices sur la santé des politiques d’atténuation réduit le coût monétaire de la lutte contre le changement climatique baisse de manière significative en Chine et en Inde, ainsi que dans le cas de pays à forte production d’énergie fossile (l’Australie, le Canada et les Etats-Unis).

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 908.

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Date of creation: 21 Dec 2011
Handle: RePEc:oec:ecoaaa:908-en
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