Climate change policy in Brazil and Mexico: Results from the MIT EPPA model
Sergey Paltsev and
Angelo Gurgel ()
Energy Economics, 2016, vol. 56, issue C, 600-614
Based on an in-depth analysis of results from the MIT Economic Projection and Policy Analysis (EPPA) model of climate policies for Brazil and Mexico, we demonstrate that commitments by Mexico and Brazil for 2020—made during the UN climate meetings in Copenhagen and Cancun—are reachable, but they come at different costs for each country. We find that Brazil's commitments will be met through reduced deforestation, and at no additional cost; however, Mexico's pledges will cost 4 billion US dollars in terms of reduced GDP in 2020. We explore short- and long-term implications of several policy scenarios after 2020, considering current policy debates in both countries. The comparative analysis of these two economies underscores the need for climate policy designed for the specific characteristics of each country, accounting for variables such as natural resources and current economic structure. Our results also suggest that both Brazil and Mexico may face other environmental and economic impacts from stringent global climate policies, affecting variables such as the value of energy resources in international trade.
Keywords: Climate policy; Brazil; Mexico; General equilibrium; Land use; Biofuels (search for similar items in EconPapers)
JEL-codes: C61 D58 Q43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:56:y:2016:i:c:p:600-614
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 ().