The social costs of second-best policies: Evidence from agricultural GHG mitigation

Cloé Garnache, Pierre Mérel (), Juhwan Lee and Johan Six

Journal of Environmental Economics and Management, 2017, vol. 82, issue C, 39-73

Abstract: This paper investigates the social costs of second-best agricultural greenhouse gas (GHG) mitigation policies. Adjustments along the land use and input intensity margins are represented within a regionalized optimization model of California crop production calibrated to economic and agronomic information. Second-best policies relying on spatially aggregated GHG emission factors lead to small abatement efficiency losses, while policies targeting a single GHG lead to moderate losses. In contrast, policies targeting a single input entail large abatement efficiency losses, which nonetheless can be reduced by combining instruments.

Keywords: Greenhouse gases; Climate policy; Second best; Abatement efficiency (search for similar items in EconPapers)
JEL-codes: C61 Q10 Q50 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:82:y:2017:i:c:p:39-73

DOI: 10.1016/j.jeem.2016.10.004

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