Long-run effects of post-Kyoto policies: Applying a fully dynamic CGE model with heterogeneous capital
Open access
Date
2010-04Type
- Working Paper
ETH Bibliography
yes
Altmetrics
Abstract
The paper develops a new type of CGE model to predict the effects of carbon policies on consumption, welfare, and sectoral development in the long run. Growth is fully endogenous, based on increasing specialization in capital varieties, and specific in each sector of the economy. The benchmark scenario is calculated based on the endogenous gains from specialization which carry over to policy simulation. Applying the model to the Swiss economy we nd that a carbon policy following the Copenhagen Accord entails a moderate but not negligible welfare loss compared to development without any negative effects of climate change. Energy extensive as well as capital and knowledge intensive sectors profit in the form of increased growth rates. Show more
Permanent link
https://doi.org/10.3929/ethz-a-006039070Publication status
publishedJournal / series
Economics Working Paper SeriesVolume
Publisher
ETH Zurich, Center of Economic Research (CER-ETH)Subject
Carbon policy; CGE models; Energy and endogenous growth; Heterogeneous capitalOrganisational unit
03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
Related publications and datasets
Is new version of: http://hdl.handle.net/20.500.11850/160463
More
Show all metadata
ETH Bibliography
yes
Altmetrics