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Cutting CO2 Emissions: The Effects of Alternative Policy Approaches

This paper starts from the premise that attempts to curtail global emissions of greenhouse gases are likely to be made in the next few decades. We discuss some of the possible international effects which could result from attempts to achieve such a cutback, and illustrate a methodology which we hope to extend, in subsequent work, to further evaluating the consequences of responding to the problem of global warming. We identify possible magnitudes of effects of cutting global CO2 emissions, and illustrate ways in which inter-country terms-of-trade effects and changes in trade patterns may occur.

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Energy Specializations: Energy and the Environment – Climate Change and Greenhouse Gases; Energy and the Environment – Policy and Regulation

JEL Codes:
Q54 - Climate; Natural Disasters and Their Management; Global Warming
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Keywords: CO2 emission reduction, CGE model, Taxes, Emissions ceilings

DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No1-7

Published in Volume 12, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.