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GTAP Resource #3379

"A modified GTAP-E model for climate change and trade policy analysis"
by Antimiani, Alessandro, Valeria Costantini, Chiara Martini, Luca Salvatici and Maria Cristina Tommasino

In this paper we develop a modified GTAP-E version, adjusting data on carbon emissions, updating the baseline to 2004 and expanding sectoral and geographical aggregation. As far as the regional aggregation is concerned, we consider a “Post-Kyoto” environment, with 11 Annex B countries/regions featuring country-specific CO2 reduction commitments. Moreover, we single out the major emerging economies, such as Brazil, China and India, since they may be the source of alleged carbon leakage. We distinguish 25 sectors in order to simulate the impact of alternative policies in energy intensive and non-intensive sectors. In terms of experiment design, we firstly assess the carbon leakage implied by the Kyoto Agreement in two scenarios featuring emission trading and national carbon taxes, respectively. Then, we compare two possible approaches to deal with such a carbon leakage: a cooperative scenario, featuring global emission trading, and a “non-cooperative” scenario, where the Annex-B countries introduce some carbon tariffs.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2010
Created: Salvatici, L. (4/15/2010)
Updated: Batta, G. (5/11/2010)
Visits: 3,422
- Climate change policy

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