Funding entity Ministerio de Educación y Ciencia
Participated by Universidad de Vigo
This research project is devoted to quantify the environmental, economic and distributional effects from the application of public policies to control greenhouse gas emissions. In order to do so, we carry out an extension of the integrated macro-micro model developed by the participants to take account of two key sectors for this type of policies: electricity and transportation. We also propose to incorporate all regulated pollutants and the future international market for emission permits, given its relevance with the application of the Kyoto Protocol. A fundamental issue in the proposal is the analysis of hybrid pricing (taxes) and quantity (emissions markets) climate change policies, explicitly accounting for welfare gains and distributional changes from this approximation when compared to a market approach only circumscribed to some sectors or activities.