Capital malleability and the macroeconomic costs of climate policy

Arbeitspapier

This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The issue is explored by means of a theoretical model, a numerical analysis and a computable general equilibrium (CGE) model. Considering the three approaches together is fundamental in obtaining theory-compatible policy-relevant results. The model outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore, it is important that, especially for the analysis of short-term environmental regulations, the issue of capital malleability is taken into consideration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 2010,19

Classification and Topics

• Classification: Wirtschaft ; Computable General Equilibrium Models ; Computable and Other Applied General Equilibrium Models ; Taxation and Subsidies: Incidence ; Energy and the Macroeconomy
• Subject: General Equilibrium ; CGE Models ; Climate Change Policy ; Kapital ; Kapitalmobilität ; Klimaschutz ; Umweltabgabe ; Allgemeines Gleichgewicht ; CGE-Modelling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lanzi, Elisa ; Sue Wing, Ian
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/43523
• Last update: 10.03.2025, 11:44 AM CET