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GTAP Resource #7200

"Within-country inequality and climate change - A model for IAMs with an application to multiple countries"
by Zheng, Yu, Johannes Emmerling, Carolina Grottera and Giacomo Marangoni

The role of inequality for the evaluation and policy response to climate change has received great attention in recent years. Yet, endogenizing the evolvement of inequality has so far not been addressed with standard IAMs widely used. We address this research gap by developing an inequality module based on household deciles and an optimization routine for each group of households. Capturing skill premia, capital income dynamics, and consumption heterogeneity including energy and food consumption, we are able to endogenously simulate the impact of carbon prices and other macroeconomic drivers on the evolvement of inequality consistent with the IAM socioeconomic and climate scenarios. Moreover, we validate the module by a hind-casting exercise and find broad consistence with observed inequality trends.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Zheng, Y. (4/12/2024)
Updated: Zheng, Y. (4/12/2024)
Visits: 28
- Climate change policy
- Climate impacts
- Sustainable development
- Economic development
- Model extension/development

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