The regional economic effects of a reduction in carbon emissions and an evaluation of offsetting policies in China

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

China has promised large cuts in CO2 emissions by 2020, which is likely to have differential effects across regions. We know little about the regional effects of pollution reduction. We make a contribution to filling this gap using a small theoretical model with two regions, features of the Chinese economy and the right to emit CO2 as a factor of production. We find regionally differentiated effects on income, welfare and output and explore government policies designed to reduce these effects. The effects of fiscal policies depend crucially on whether one or both regions respond and on whether output or welfare is targeted. Boosts to productive capacity do better in terms of output but not welfare. © 2013 The Author(s). Papers in Regional Science © 2013 RSAI.
Original languageEnglish
Pages (from-to)429-453
JournalPapers in Regional Science
Volume93
Issue number2
DOIs
Publication statusPublished - 2014

Fingerprint

carbon emission
China
evaluation
economics
welfare
fiscal policy
government policy
effect
policy
income
pollution
economy

Cite this

@article{3712597867b1462a811b945408354f0c,
title = "The regional economic effects of a reduction in carbon emissions and an evaluation of offsetting policies in China",
abstract = "China has promised large cuts in CO2 emissions by 2020, which is likely to have differential effects across regions. We know little about the regional effects of pollution reduction. We make a contribution to filling this gap using a small theoretical model with two regions, features of the Chinese economy and the right to emit CO2 as a factor of production. We find regionally differentiated effects on income, welfare and output and explore government policies designed to reduce these effects. The effects of fiscal policies depend crucially on whether one or both regions respond and on whether output or welfare is targeted. Boosts to productive capacity do better in terms of output but not welfare. {\circledC} 2013 The Author(s). Papers in Regional Science {\circledC} 2013 RSAI.",
author = "A. Chen and Nicolaas Groenewold",
year = "2014",
doi = "10.1111/pirs.12024",
language = "English",
volume = "93",
pages = "429--453",
journal = "Papers in Regional Science",
issn = "1056-8190",
publisher = "Wiley-Blackwell",
number = "2",

}

TY - JOUR

T1 - The regional economic effects of a reduction in carbon emissions and an evaluation of offsetting policies in China

AU - Chen, A.

AU - Groenewold, Nicolaas

PY - 2014

Y1 - 2014

N2 - China has promised large cuts in CO2 emissions by 2020, which is likely to have differential effects across regions. We know little about the regional effects of pollution reduction. We make a contribution to filling this gap using a small theoretical model with two regions, features of the Chinese economy and the right to emit CO2 as a factor of production. We find regionally differentiated effects on income, welfare and output and explore government policies designed to reduce these effects. The effects of fiscal policies depend crucially on whether one or both regions respond and on whether output or welfare is targeted. Boosts to productive capacity do better in terms of output but not welfare. © 2013 The Author(s). Papers in Regional Science © 2013 RSAI.

AB - China has promised large cuts in CO2 emissions by 2020, which is likely to have differential effects across regions. We know little about the regional effects of pollution reduction. We make a contribution to filling this gap using a small theoretical model with two regions, features of the Chinese economy and the right to emit CO2 as a factor of production. We find regionally differentiated effects on income, welfare and output and explore government policies designed to reduce these effects. The effects of fiscal policies depend crucially on whether one or both regions respond and on whether output or welfare is targeted. Boosts to productive capacity do better in terms of output but not welfare. © 2013 The Author(s). Papers in Regional Science © 2013 RSAI.

U2 - 10.1111/pirs.12024

DO - 10.1111/pirs.12024

M3 - Article

VL - 93

SP - 429

EP - 453

JO - Papers in Regional Science

JF - Papers in Regional Science

SN - 1056-8190

IS - 2

ER -