University of Tasmania
Browse

File(s) under permanent embargo

The regional economic effects of a reduction in carbon emissions

journal contribution
posted on 2023-05-17, 23:15 authored by Chen, A, Groenewold, N, Hagger, AJ
Concern about climate change has led to policy to reduce CO2 emissions although it is likely that policy will have differential regional impacts. While regional impacts will be politically important, very little analysis of them has been carried out. This paper contributes to the analysis of this issue by building a small model involving two regions, incorporating the right to emit CO2 as a factor of production with the level of permitted emissions set by the national government. We argue that there is likely to be pressure on governments to use other policies to offset the possible adverse regional economic consequences of the pollution-reduction policy; we also consider a range of such policies. Using numerical simulation, we find that a 10 per cent reduction has relatively small but regionally differentiated economic effects. Standard fiscal policies are generally ineffective or counterproductive while labour market policies are more useful in offsetting the adverse effects.

History

Publication title

Australian Journal of Agricultural and Resource Economics

Volume

57

Issue

4

Pagination

483-500

ISSN

1364-985X

Department/School

TSBE

Publisher

Blackwell Publ Ltd

Place of publication

108 Cowley Rd, Oxford, England, Oxon, Ox4 1Jf

Rights statement

Copyright 2013 Australian Agricultural and Resource Economics Society Inc. and Wiley Publishing Asia Pty Ltd

Repository Status

  • Restricted

Socio-economic Objectives

Carbon and emissions trading

Usage metrics

    University Of Tasmania

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC