2002 World Congress of Environmental and Resource Economists

This paper investigates the world economic implications of climate change policy strategies, and particularly evaluates the impacts of an implementation of Clean Development Mechanisms, Joint Implementation and Emissions Trading with a world integrated assessment model. Of special interest in this context are the welfare spill over and competitiveness effects resulting from diverse climate policy strategies. This study elaborates and compares multi gas policy strategies and explores the impacts of sink inclusion. Due to the recent isolated climate policy strategy decision by the United States of America, we examine the economic impacts on all world regions of the USA’s non cooperative, free rider position. It turns out that Clean Development Mechanisms and Joint Implementation show evidence of improvement in the economic development in host countries and increase the share of new applied technologies. The decomposition of welfare effects demonstrates that the competitiveness effect (including the spill over effects from trade) have the strongest importance because of the intense trade relations between countries. Climatic effects will have a significant impact within the next 50 years, will cause considerable welfare losses to world regions and will intensify if nations highly responsible for pollution like the USA do not reduce their emissions.



	Paper Title:	Economic Impact Assessment Of Alternative Climate Policy Strategies
	Presenting Author:	Claudia Kemfert (Oldenburg University)
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	Abstract:	This paper investigates the world economic implications of climate change policy strategies, and particularly evaluates the impacts of an implementation of Clean Development Mechanisms, Joint Implementation and Emissions Trading with a world integrated assessment model. Of special interest in this context are the welfare spill over and competitiveness effects resulting from diverse climate policy strategies. This study elaborates and compares multi gas policy strategies and explores the impacts of sink inclusion. Due to the recent isolated climate policy strategy decision by the United States of America, we examine the economic impacts on all world regions of the USA’s non cooperative, free rider position. It turns out that Clean Development Mechanisms and Joint Implementation show evidence of improvement in the economic development in host countries and increase the share of new applied technologies. The decomposition of welfare effects demonstrates that the competitiveness effect (including the spill over effects from trade) have the strongest importance because of the intense trade relations between countries. Climatic effects will have a significant impact within the next 50 years, will cause considerable welfare losses to world regions and will intensify if nations highly responsible for pollution like the USA do not reduce their emissions.
	Link to paper:	http://weber.ucsd.edu/~carsonvs/papers/468.pdf

	Session / Day / Time	3A / Monday / 2:15 - 4:15 pm

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