Impact of Climate Policy on the Basque Economy

Rob Dellink, Mikel González
2005 Social Science Research Network  
In this paper analyze the economic effects of CO 2 emission reductions in the Basque Country (Spain) using an applied general equilibrium (AGE) model with specific attention to environment-energy-economy interactions. Environmental policy is implemented through a system of tradable pollution permits that the government auctions. The costs of different levels of CO 2 abatement are discussed, focusing on the variations of macroeconomic, sectoral and environment-energy variables. Results show that
more » ... . Results show that the costs for achieving the Kyoto targets can remain limited if the appropriate combination of changes in fuel-mix and restructuring of the economy is induced. Impacto económico del control del cambio climático en el País Vasco RESUMEN: En este trabajo analizamos el impacto económico de una reducción de las emisiones de CO 2 en el País Vasco. Para ello utilizamos un modelo de equilibrio general aplicado (MEGA), que presta
doi:10.2139/ssrn.825584 fatcat:ad3zsbbgcjdijm7wiwanv42gtu