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Emission Policies And The Nigerian Economy: Simulations From A Dynamic Applied General Equilibrium Model





Recently, there has been growing concern that human activities may be affecting the global climate through growing atmospheric concentrations of greenhouse gases(GHG). Such warming could have major impacts on economic activity and society. For the Nigerian case, the study uses multisector dynamic applied general equilibrium to quantify the economy- wide, distributional and environmental costs of policies to curb GHG emissions. The simulation results indicates effectiveness of carbon tax, tradeable permit and backstop technology policies in curbing GHG emissions but with distorted economy wide and income distributional effects. However, the model was found to be sensitive to three key exogenous variable and parameters tested: Lower GDP growth rate, changed interfuel substitution elasticity and autonomous energy efficiency improvement factor. Unlike the first test, the last two tests only had improved environmental effect but stable economy wide effect. This then suggests that domestic energy conservation measures could be a second best alternative.

Suggested Citation

  • Godwin Chukwudum Nwaobi, 2002. "Emission Policies And The Nigerian Economy: Simulations From A Dynamic Applied General Equilibrium Model," GE, Growth, Math methods 0202002, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpge:0202002
    Note: Type of Document - MICROSOFT WORD; prepared on IBM PC ; to print on HP; pages: 70; figures: included. We acknowledge with thanks the generous grant provided by the AERC, OECD and ACW, that was used in carrying out this research.

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    References listed on IDEAS

    1. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, March.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, June.
    3. Maler, Karl-Goran, 1985. "Welfare economics and the environment," Handbook of Natural Resource and Energy Economics, in: A. V. Kneeseā€  & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 1, pages 3-60, Elsevier.
    4. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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    Cited by:

    1. Jian Zhang, 2005. "Environmental Taxation in Energy Sector - A Theoretical and Applied Analysis," Computing in Economics and Finance 2005 213, Society for Computational Economics.

    More about this item


    greenhouse gases(ghg); dynamic applied general equilibrium model; carbontax; tradeable permits; backstop technology; carbon dioxide(CO2); sulphur oxides(SOx); Nitrogen Oxides(NOx);

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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