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GTAP Resource #651

"Climate Change Policies Comparative Advantage, and A Small Open Economy: The Case of Finland"
by Haaparanta, Pertti, Leena Kerkela, Matti Liski, Toni Riipinen and Pekka Sulamaa

We quantify the costs of global climate change policies to Finland using a modified version of the GTAP-E model. We calculate resource abundance profiles proposed by Leamer assuming emission rights to be new factor endowments to charcterize the impact of the Kyoto agreement on the distribution of the comparative advantage and to interpret the results. We estimate economy-level and detailed sector-specific effects of climate change policies without isolating Finland from world markets: changes in trade linkages are endogenously determined by global climate change policies. We produce a range of estimates by varying the regional coverage and the way of implementation of the climate treaty. When trade linkages are explicit, standard growth scenarios imply considerably higher emission reductions than previous studies.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Created: (5/30/2001)
Updated: Bacou, M. (7/26/2001)
Visits: 2,818
- Climate change policy

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