Citation

Discussion Paper Details

Please find the details for DP15419 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Climate Change Mitigation Policies: Aggregate and Distributional Effects

Author(s): Tiago Cavalcanti, Zeina Hasna and Cezar Santos

Publication Date: November 2020

Keyword(s):

Programme Area(s): Macroeconomics and Growth

Abstract: We evaluate the aggregate and distributional effects of climate change mitigation policies using a multi-sector equilibrium model with intersectoral input-output linkages and worker heterogeneity calibrated to different countries. The introduction of carbon taxes leads to changes in relative prices and inputs reallocation, including labor. For the United States, reaching its Paris Agreement pledge would imply at most a 0.6% drop in output. This impact is distributed asymmetrically across sectors and individuals. Workers with a comparative advantage in dirty energy sectors who do not reallocate bear relatively more of the cost but constitute a small fraction of the labor force.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15419

Bibliographic Reference

Cavalcanti, T, Hasna, Z and Santos, C. 2020. 'Climate Change Mitigation Policies: Aggregate and Distributional Effects'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15419