Ancillary Benefits of Climate Policy

Journal of Economics and Statistics, Vol. 224, No. 4, 2004

Posted: 16 Sep 2011

See all articles by Anil Markandya

Anil Markandya

Basque Centre for Climate Change (BC3); University of Bath

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2004

Abstract

The benefits of climate policy normally consist exclusively of the reduced impacts of climate change, i.e., the policy’s primary aim. Our analysis of benefits of climate policy suggests, however, that researchers and policymakers should also take account of ancillary benefits, e.g., in the shape of improved air quality induced by climate protection measures. A consideration of both, primary and ancillary benefits, has a positive influence on global climate protection efforts, e.g., because the regional impact of ancillary effects attenuates easy-riding motives of countries with respect to their provision of climate protection. In this article, we analyze the nature of ancillary benefits, present an overview of European assessment studies and explain possible methods to estimate ancillary benefits. Main differences between primary and ancillary benefits are pointed out. Furthermore, we stress the major influences of ancillary benefits on climate policy. Finally, we present one of the first models integrating primary and ancillary benefits. By this model quantitative results are calculated with respect to ancillary benefits in the UK considering different greenhouse gas (GHG) control levels. It is observed that the ancillary benefits could cover about 4 percent of the full GHG reduction cost.

Keywords: climate policy, ancillary benefits, pollution control

JEL Classification: H41, Q28

Suggested Citation

Markandya, Anil and Rübbelke, Dirk T. G., Ancillary Benefits of Climate Policy (July 1, 2004). Journal of Economics and Statistics, Vol. 224, No. 4, 2004. Available at SSRN: https://ssrn.com/abstract=1928395

Anil Markandya (Contact Author)

Basque Centre for Climate Change (BC3)

Gran Vía 35-2
Bilbao, Vizcaya 48009
Spain

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg ( email )

Freiberg, 09599
Germany

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