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GTAP Resource #7260

"Assessing the Distributional Implications of Carbon Pricing Strategies for Mitigating Global Greenhouse Gas Emissions"
by Osorio Rodarte, Israel, Maksym Chepeliev and Maryla Maliszewska

This paper assesses the distributional implications of a wide array of carbon pricing mechanisms aimed at curbing global greenhouse gas (GHG) emissions. By integrating a general equilibrium model with a global microsimulation, we investigate the effects of these policies on poverty and inequality levels across different regions. Our analysis reveals that while carbon mitigation measures generally have adverse but marginal impacts on global poverty, the magnitude of these effects varies significantly among countries. Under a scenario aligned with current nationally determined contributions, we project a modest increase in extreme poverty, impacting approximately 5 million individuals by 2050. A more ambitious trajectory targeting a 2oC cap on temperature rise could double the impact on poverty to 10 million, albeit remaining low in historical comparison. Furthermore, factoring in the monetary health co-benefits of reducing GHG emissions, all scenarios have a net poverty-alleviating effect. The overall impact on global inequality appears minimal. Nonetheless, inequality decompositions reveal opposing trends in within- and between-country inequality

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Osorio Rodarte, I. (4/14/2024)
Updated: Osorio Rodarte, I. (4/14/2024)
Visits: 101
- Climate change policy
- Economic analysis of poverty
- Economic development
- Global

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