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GTAP Resources: Resource Display

GTAP Resource #5536

"Global Climate Change Mitigation: Unilateral and Strategic Incentive"
by Perdana, Sigit and Rod Tyers


Abstract
Central to global agreement on carbon emissions are strategic interactions amongst regions over carbon tax implementation and the benefits to be shared. These are re-examined in this paper, in which benefits from mitigation stem from a meta-analysis that links carbon concentration with region-specific measures of economic welfare. Implementation costs are then drawn from a highly disaggregated model of global economic performance. Multiplayer games are then constructed, the results from which are sensitive to embodied temperature scenarios and discount rates but robustly reveal that the US and China would be net gainers from unilateral implementation in net present value terms. The dominant strategy for all other countries is to free ride. Net gains to the three large economies are bolstered by universal adoption, which could be induced by affordable side payments. Yet the revealed downside is that net gains to all regions are negative for at least two decades, rendering commitment to abatement politically difficult.


Resource Details (Export Citation) GTAP Keywords
Category: 2018 Conference Paper
Status: Published
By/In: Presented at the 21st Annual Conference on Global Economic Analysis, Cartagena, Colombia
Date: 2018
Version:
Created: Perdana, S. (4/14/2018)
Updated: Perdana, S. (4/17/2018)
Visits: 377
- Dynamic modeling
- Climate change policy
- Climate impacts
- Economic development
- Economic growth
- Asia (South-Central)
- European Union
- North America


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Public Access
  File format Perdana-Tyers Global Climate Change Mitigation GTAP 21(rev)  (1.0 MB)   Replicated: 0 time(s)


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Comments (1 posted)
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Posted by: Perdana, Sigit   4/14/2018 1:38:00 AM
This paper will be presented at the 21st GTAP conference in Cartagena Colombia, 13-15 June 2018