Incorporating Local Health in Assessing GHG Mitigation: An Application to Thailand

Jennifer C. Li
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Jennifer C. Li: Department of Public Policy, University of North Carolina at Chapel Hill, NC, USA

Chapter 8 in Computable General Equilibrium Approaches in Urban and Regional Policy Studies, 2006, pp 139-166 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractAncillary benefits of greenhouse gas (GHG) mitigation refer to benefits from GHG mitigation in addition to lowered adverse impacts of global climate change. A major ancillary benefit of GHG mitigation is reduced local air toxins, which improves health. The purpose of the study is not to determine whether ancillary benefits of GHG mitigation can or cannot justify GHG mitigation. Rather, we discuss how an important benefit of addressing GHG emission — the local health effects — should and can be incorporated using the approaches put forth. A Computable General Equilibrium (CGE) model is used for simulating a carbon tax policy. A health effects submodel takes the local air emissions output from the CGE model and assesses the implications for ambient air concentration, health, and labor supply. Labor and medical expenditure changes are fed back into the economy. Applying this approach to Thailand, when health feedback is included, we find that: (1) negative impact on GDP under a carbon tax drops by 45%, and (2) welfare improves for households and cleaner producers.

Keywords: Computable General Equilibrium (CGE) Model; Social Accounting Matrix (SAM); Urban and Regional Policies (or Urban and Regional Policy Evaluation); Each Industry's Market Clearance; Structural and Long-Term Policy Impacts (search for similar items in EconPapers)
JEL-codes: E5 E6 (search for similar items in EconPapers)
Date: 2006
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