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Effects of international climate policy for India: Evidence from a national and global CGE model

Matthias Weitzel (), Joydeep Ghosh, Sonja Peterson () and Basanta K. Pradhan

No 1810, Kiel Working Papers from Kiel Institute for the World Economy (IfW)

Abstract: In order to reach the two degree target it is necessary to control CO2 emissions also in fast growing emerging economies such as India. The question is how the Indian economy would be affected by e.g. including the country into an international climate regime. Existing analyses with either a global model or a single country computable general equilibrium model miss important aspects such as distributional issues or international repercussions. By soft-linking models of these two classes, we provide a more detailed view on these issues. In particular, we analyze different options of transferring revenues from domestic carbon taxes and international transfers to different household types and how different assumptions on exchange rates affect transfer payments. We also show effects stemming from international price repercussions. Our analysis focusses on how these transmission channels affect welfare of nine different household types.

Keywords: Computable General Equilibrium Model; International Climate Policy; India (search for similar items in EconPapers)
JEL-codes: C68 O53 Q54 Q56 (search for similar items in EconPapers)
Date: 2012
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Related works:
Journal Article: Effects of international climate policy for India: evidence from a national and global CGE model (2015) Downloads
Working Paper: Effects of international climate policy for India: Evidence from a national and global CGE model (2013) Downloads
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