Methods for including income distribution in global CGE models for long-term climate change research

Bas van Ruijven, O’Neill, Brian C. and Jean Chateau ()

Energy Economics, 2015, vol. 51, issue C, 530-543

Abstract: The consequences of climate policy and the impacts of climate change vary among different types of households depending on their income level, expenditure pattern, and other socioeconomic characteristics. Global economy-environment models that are used to assess climate change issues traditionally do not distinguish households by income or other attributes. To facilitate progress in this area, we review and assess literature on methods to include household heterogeneity in global long-term Computable General Equilibrium (CGE) models. We distinguish among three categories of approaches: 1) the explicit modeling of multiple household types within the CGE framework, 2) micro-simulation modeling, and 3) direct modeling of income distribution. For each of these approaches we describe the method, key assumptions, limitations and several prominent examples from the literature. Moreover, we discuss data needs, including the contents of household survey data, their availability and processing. We conclude with an overview of what each method could provide for global, long-term climate-related research.

Keywords: Income distribution; Climate change; CGE model; Microsimulation; Households (search for similar items in EconPapers)
JEL-codes: C68 D30 D58 E20 J10 Q00 R20 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988315002406
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:51:y:2015:i:c:p:530-543

DOI: 10.1016/j.eneco.2015.08.017

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().