Climate Policy Options: A Comparison of Economic Performance
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Summary:
We use a global computable general equilibrium model to compare the economic performance of alternative climate policies along multiple dimensions, including macroeconomic outcomes, energy prices, and trade competitiveness. Carbon pricing which keeps the aggregate cost lower and preserves better the overall competitiveness than across-the-board regulation is the first-best policy, especially in energy intensive and trade exposed industries. Regulations and feebates are good alternatives in the power sector, where technological substitution is possible. Feed-in subsidies, if used alone, are not cost effective.
Series:
Working Paper No. 2022/242
Frequency:
regular
English
Publication Date:
December 9, 2022
ISBN/ISSN:
9798400225239/1018-5941
Stock No:
WPIEA2022242
Pages:
48
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