Arbeitspapier
Climate change mitigation policies: Aggregate and distributional effects
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 original Paris Agreement pledge would imply at most a 0.8% 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 suffer a welfare loss at least six times larger than workers in other sectors, but constitute less than 2% of the US labor force.
- Language
-
Englisch
- Bibliographic citation
-
Series: IDB Working Paper Series ; No. IDB-WP-1387
- Classification
-
Wirtschaft
General Aggregative Models: Neoclassical
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
-
Climate change
Carbon taxes
Worker heterogeneity
Labor reallocation
- Event
-
Geistige Schöpfung
- (who)
-
Cavalcanti, Tiago
Hasna, Zeina
Santos, Cézar
- Event
-
Veröffentlichung
- (who)
-
Inter-American Development Bank (IDB)
- (where)
-
Washington, DC
- (when)
-
2022
- DOI
-
doi:10.18235/0004535
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cavalcanti, Tiago
- Hasna, Zeina
- Santos, Cézar
- Inter-American Development Bank (IDB)
Time of origin
- 2022