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

  • GODWIN CHUKWUDUM NWAOBI

    (THE UNIVERSITY OF ABUJA)

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.

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File URL: http://econwpa.repec.org/eps/ge/papers/0202/0202002.pdf
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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0202002.

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Length: 70 pages
Date of creation: 21 Feb 2002
Date of revision:
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.
Contact details of provider: Web page: http://econwpa.repec.org

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  1. 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.
  2. repec:cup:cbooks:9780521311120 is not listed on IDEAS
  3. repec:cup:cbooks:9780521266550 is not listed on IDEAS
  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.
  5. repec:cup:cbooks:9780521322249 is not listed on IDEAS
  6. repec:cup:cbooks:9780521319867 is not listed on IDEAS
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