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GTAP Resources: Resource Display

GTAP Resource #3816

"COSTS OF REDUCING GREENHOUSE GAS EMISSIONS IN BRAZIL"
by Gurgel, Angelo and Sergey Paltsev


Abstract
The Brazilian government has announced volunteer targets to reduce greenhouse gas (GHG) emissions during the 2009 COP meeting in Copenhagen and reassured them in Cancun (2010) and Durban (2011). In this paper we estimate the economic impacts from alternative policies to achieve such targets, including actions to cut emissions from deforestation and agricultural production. We employ a dynamic-recursive general equilibrium model of the world economy. The main results show that deforestation emissions in Brazil can be reduced at very low costs, but the costs of cutting emissions from agricultural and energy use may reach 2.3% loss in GDP by 2020 if sector specific carbon taxes are applied. Those costs may be reduced to 1.5% under a carbon trading scheme. The negative impacts of carbon taxes on agricultural production indirectly reduce deforestation rates. However, directly cutting emissions from deforestation is the most cost-effective option, since it does not negatively affect agricultural production, which still expands on lower yield and underutilized pasture and secondary forest areas.


Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Version:
Created: Gurgel, A. (4/24/2012)
Updated: Gurgel, A. (4/24/2012)
Visits: 2,463
- Climate change policy
- South America


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