Benefits and costs to China of a climate policy1

In future agreements to cut greenhouse gases, a Chinese commitment will probably be essential. Committing for China is easier if the cost is low and the benefit to China is high. Using a new CGE-model of the Chinese economy we discuss the cost and benefit to China of taking on a climate commitment....

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Veröffentlicht in:Environment and development economics 2007-06, Vol.12 (3), p.471
Hauptverfasser: AUNAN, KRISTIN, Berntsen, Terje, O'Connor, David, Persson, Therese Hindman, VENNEMO, HAAKON, Zhai, Fan
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container_end_page
container_issue 3
container_start_page 471
container_title Environment and development economics
container_volume 12
creator AUNAN, KRISTIN
Berntsen, Terje
O'Connor, David
Persson, Therese Hindman
VENNEMO, HAAKON
Zhai, Fan
description In future agreements to cut greenhouse gases, a Chinese commitment will probably be essential. Committing for China is easier if the cost is low and the benefit to China is high. Using a new CGE-model of the Chinese economy we discuss the cost and benefit to China of taking on a climate commitment. We argue that a climate commitment gives significant ancillary benefits to China since associated particle and NOx-reductions improve public health and increase agricultural yields. The model of impact on agricultural yields is a novel feature of CGE-models. Comparing benefits to economic costs produces striking results. We find that China may reduce its CO2-emissions by 17.5 per cent without suffering a welfare loss. Half of the benefit originates in the novel agricultural model. We also discuss the distributional impact of a climate commitment. In general the distributional impact is not averse. [PUBLICATION ABSTRACT]
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source PAIS Index; JSTOR Archive Collection A-Z Listing; Cambridge University Press Journals Complete
subjects Air pollution
Carbon dioxide
Climate
Climate change
Economic impact
Economic models
Emissions
Emissions control
Environmental policy
Farm buildings
Greenhouse effect
Greenhouse gases
Outdoor air quality
Public health
Studies
title Benefits and costs to China of a climate policy1
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