Adaptation and Mitigation in Long-term Climate Policy

Springer Science and Business Media LLC - Tập 55 - Trang 217-243 - 2012
Thierry Bréchet1, Natali Hritonenko2, Yuri Yatsenko1,3
1Université Catholique de Louvain, Louvain-la-Neuve, Belgium
2Department of Mathematics, Prairie View A&M University, Prairie View, USA
3School of Business, Houston Baptist University, Houston, USA

Tóm tắt

The paper analytically explores the optimal allocation of investments into mitigation and environmental adaptation against climate change damages at a macroeconomic level. The economic-environmental model is formulated as a social planner problem where adaptation and abatement investments are separate decision variables. The existence of a unique steady state is proven. A comparative static analysis of optimal investments leads to essential implications for associated long-term environmental policies. It is shown that the optimal policy mix between adaptation and mitigation is lower for countries with higher economic efficiency for all applicable parameter ranges. Data calibration and numerical simulations are provided to estimate practical validity of theoretical outcomes.

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