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dc.titleClimate Change Mitigation Policies: Aggregate and Distributional Effects
dc.contributor.authorCavalcanti, Tiago
dc.contributor.authorHasna, Zeina
dc.contributor.authorSantos, Cezar
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2022-11-01T00:11:00
dc.date.issue2022-11-01T00:11:00
dc.description.abstractWe 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.
dc.format.extent55
dc.identifier.doihttp://dx.doi.org/10.18235/0004535
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Climate-Change-Mitigation-Policies-Aggregate-and-Distributional-Effects.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectEnergy
dc.subjectCarbon Tax
dc.subjectLabor Force
dc.subjectEconomy
dc.subjectTaxation
dc.subjectSubsidy
dc.subjectLabor
dc.subjectGross Domestic Product
dc.subject.jelcodeE13 - Neoclassical
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeJ24 - Human Capital • Skills • Occupational Choice • Labor Productivity
dc.subject.keywordsclimate change;carbon taxes;Worker heterogeneity;Labor reallocation
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01387
idb.operationRG-K1089
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