Impact of Climate Policy on the Basque Economy

42 Pages Posted: 26 Oct 2005

See all articles by Rob Dellink

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group; Organization for Economic Co-Operation and Development (OECD)

Mikel González

University of the Basque Country

Date Written: September 2005

Abstract

In this paper we analyze the economic effects of CO2 emission reductions in the Basque Country (Spain) using an applied general equilibrium (AGE) model with specific attention to environment-energy-economy interactions. Environmental policy is implemented through a system of tradable pollution permits that the government auctions. The costs of different levels of CO2 abatement are discussed, focusing on the variations of macroeconomic, sectoral and environment-energy variables. Results show that the costs for achieving the Kyoto targets can remain limited if the appropriate combination of changes in fuel-mix and restructuring of the economy is induced.

Keywords: Applied general equilibrium, Climate change, Tradable pollution permits, Basque country

JEL Classification: D58, H21, Q20, Q48

Suggested Citation

Dellink, Rob and González, Mikel, Impact of Climate Policy on the Basque Economy (September 2005). FEEM Working Paper No. 113.05, Available at SSRN: https://ssrn.com/abstract=825584 or http://dx.doi.org/10.2139/ssrn.825584

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group ( email )

P.O. Box 8130
Wageningen, 6700 EW
Netherlands
+31 (0)317 4 82009 (Phone)
+31 (0)317 4 84933 (Fax)

HOME PAGE: http://www.sls.wau.nl/enr/staff/dellink/

Organization for Economic Co-Operation and Development (OECD) ( email )

Paris
France

HOME PAGE: http://www.oecd.org/env/cc/econ

Mikel González (Contact Author)

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
76
Abstract Views
1,145
rank
386,126
PlumX Metrics