Climate Change Mitigation Policies: Aggregate and Distributional Effects

Cezar Santos, Tiago Cavalcanti and Zeina Hasna

No 15419, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We evaluate the aggregate and distributional effects of climate change mitigation policies using a multi-sector equilibrium model with intersectoral input–output linkages and worker heterogeneity calibrated to different countries. The introduction of carbon taxes leads to changes in relative prices and inputs reallocation, including labor. For the United States, reaching its Paris Agreement pledge would imply at most a 0.6\% drop in output. This impact is distributed asymmetrically across sectors and individuals. Workers with a comparative advantage in dirty energy sectors who do not reallocate bear relatively more of the cost but constitute a small fraction of the labor force.

Date: 2020-11
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP15419 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Climate Change Mitigation Policies: Aggregate and Distributional Effects (2022)
Working Paper: Climate Change Mitigation Policies: Aggregate and Distributional Effects (2021)
Working Paper: Climate Change Mitigation Policies: Aggregate and Distributional Effects (2021)
Working Paper: Climate Change Mitigation Policies: Aggregate and Distributional Effects (2020)
Working Paper: Climate Change Mitigation Policies: Aggregate and Distributional Effects (2020)
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:cpr:ceprdp:15419

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15419

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().