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A Climate Treaty and the Norwegian Economy: A CGE Assessment

Anne Brendemoen and Haakon Vennemo

Year: 1994
Volume: Volume15
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No1-5
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Abstract:
This paper examines the impact of an international climate treaty on 61 single country-Norway. A disaggregate computable general equilibrium (CGE), model is used. We discuss the treaty's effects on main macroeconomic indicators, economic growth, distributional impacts, the impact on pollutant emissions other than CO2 and the secondary benefits of this reduction. The results suggest that CO2 emissions will decrease compared to the current level, The distributional impacts are modest. Increases in secondary benefits recoup almost one half of the loss in private consumption. We characterize the uncertainty of this estimate.





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