Climate Change Mitigation Policies

Aggregate and Distributional Effects

Datos Bibliográficos

ID9713835
AutoresTiago Calvacanti (University of Cambridge), Zeina Hasna (International Monetary Fund, USA & University of Cambridge), Cezar Santos (0000-0001-9713-9698, Inter-American Development Bank, USA & CEPR)
Año2025
Volumen135
Número668
Páginas1341-1387
Fecha de publicación2025-04-26
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueae113
OpenAlexW3134383734
IdiomaEN
Referencias citadas30

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 various countries. Carbon taxes induce changes in relative prices and input reallocation, notably in labour. In the United States, achieving its Paris Agreement commitment results in, at most, a 0.8% reduction in output, unevenly affecting different sectors and individuals. Some workers in dirty energy sectors, forming less than 2% of the labour force, endure welfare losses six times larger than others. China, reliant on high-carbon energy, experiences larger economic effects from an identical emission reduction

Aggregate (composite · China · Climate change · Climate change mitigation · Economics · General equilibrium theory · Macroeconomics · Market economy · Natural resource economics · Welfare · Climate Change Policy and Economics · Energy, Environment, and Transportation Policies · Fiscal Policy and Economic Growth