scholarly journals Intermediate input linkage and carbon leakage

2017 ◽  
Vol 22 (6) ◽  
pp. 725-746 ◽  
Author(s):  
Zengkai Zhang ◽  
Zhongxiang Zhang

AbstractClimate regulations tend to target energy-intensive sectors whose products are widely used in industrial production as intermediate inputs, and carbon abatement may be partially offset by intermediate input-led leakage. This paper aims to examine the impact of intermediate input linkages on carbon leakage both theoretically and empirically. The theoretical part develops a Harberger-type model with an input-output linkage structure, identifies four leakage effects and derives closed-form solutions for these leakage effects. Its empirical part builds a computable general equilibrium model of China's economy and introduces structural decomposition analysis to link the theoretical and empirical models. When imposing a carbon price on the electricity generation sector, our results show significant sectoral carbon leakage. Our decomposition analysis further suggests that such leakage is mainly through the production substitution effect and the multiplier effect. Our results highlight the importance of sectoral linkage when discussing the carbon leakage issue of climate policies.

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 707 ◽  
Author(s):  
Pinar Korkmaz ◽  
Roland Cunha Montenegro ◽  
Dorothea Schmid ◽  
Markus Blesl ◽  
Ulrich Fahl

The required decarbonization of the energy system is a complex task, with ambitious targets under the Paris Agreement, and related policy analysis should consider possible impacts on the economy and society. By coupling the energy system model TIMES PanEU with the impact assessment model EcoSense and the computable general equilibrium model NEWAGE, we present an integrated assessment toolbox for the European energy system capable of internalizing health damage costs of air pollution while simultaneously accounting for demand changes in energy services caused by economic feedback loops. The effects of each coupling step are investigated in a scenario analysis. Additionally, CO2 decomposition analysis is applied to identify the main drivers to decarbonize the energy system. Our results show that integrating externalities forces the system to take early action, which provides benefits on the societal level. Including macro-economic variables has a negative effect on energy service demands and generally reduces the need for structural change, which are still the main drivers of decarbonization. The tighter the models are coupled, the fewer the iterations needed and the lower the CO2 prices resulting from the carbon cap and trade system. In this aspect, an integrated view can provide valuable insights to determine efficient and effective decarbonization paths.


2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.


2015 ◽  
Vol 8 (1) ◽  
pp. 102-116 ◽  
Author(s):  
M Chitiga ◽  
R Mabugu

This paper uses a relatively new approach to quantify the effects of trade liberalisation on poverty.  It relies on the combination of a standard, social accounting, matrix-based, computable general equilibrium model and household micro-data. These two tools are used sequentially in order to simulate the impact of trade policy reform.  This framework enables the decomposition of the effects of trade liberalisation, which in turn allows for an analysis of alternative social policy packages.  The methodology is applied to Zimbabwe for illustration.  The results show that poverty is reduced by tariff reduction, although the poor households get the least benefits.


Energies ◽  
2019 ◽  
Vol 12 (19) ◽  
pp. 3745 ◽  
Author(s):  
Yuzhuo Huang ◽  
Yosuke Shigetomi ◽  
Andrew Chapman ◽  
Ken’ichi Matsumoto

In order to meet climate change mitigation goals, nations such as Japan need to consider strategies to reduce the impact that lifestyles have on overall emission levels. This study analyzes carbon footprints from household consumption (i.e., lifestyles) using index and structural decomposition analysis for the time period from 1990 to 2005. The analysis identified that households in their 40s and 50s had the highest levels of both direct and indirect CO2 emissions, with decomposition identifying consumption patterns as the driving force behind these emissions and advances in CO2 reduction technology having a reducing effect on lifestyle emissions. An additional challenge addressed by this study is the aging, shrinking population phenomenon in Japan. The increase in the number of few-member and elderly households places upward pressure on emissions as the aging population and declining national birth rate continues. The analysis results offer two mitigatory policy suggestions: the focusing of carbon reduction policies on older and smaller households, and the education of consumers toward low-carbon consumption habits. As the aging, shrinking population phenomenon is not unique to Japan, the findings of this research have broad applications globally where these demographic shifts are being experienced.


2012 ◽  
Vol 1 (2) ◽  
pp. 141
Author(s):  
Nkang Nkang ◽  
Bolarin Omonona ◽  
Suleiman Yusuf ◽  
Omobowale Oni

<p>Motivated by the recent global economic crisis, this paper simulated the impact of a rise in the price of imported food on agriculture and household poverty in Nigeria using a computable general equilibrium (CGE) model and the Foster, Greer and Thorbecke (FGT) class of decomposable poverty measures on the 2006 social accounting matrix (SAM) of Nigeria and the updated 2004 Nigeria Living Standards Survey (NLSS) data. Results show that a rise in import price of food increased domestic output of food, but reduced the domestic supply of other agricultural commodities as well as food and other agricultural composites. Furthermore, a rise in the import price of food increased poverty nationally and among all household groups, with rural-north households being the least affected by the shock, while their rural-south counterparts were the most affected. A major policy implication drawn from this paper is that high import prices in import competing sectors like agriculture tend to favour the sector but exacerbate poverty in households. Thus, efforts geared at addressing the impact of this shock should strive to balance welfare and efficiency issues.</p>


2010 ◽  
Vol 13 (1) ◽  
Author(s):  
Ibrahim Ibrahim ◽  
Meily Ika Permata ◽  
Wahyu Ari Wibowo

This study analyze the impact of the implementation of trade agreements within the framework of ACFTA on Indonesia»s export by using the GTAP model; a Multi Regional Computable General Equilibrium Model. Results shows that ACFTA provide opportunities for increased export from Indonesia; Indonesia obtained a net trade creation of international trade amounted to 2% and total exports growth increased by 1.8. However, the export performance of Indonesia in the period showed a decrease of competitiveness, as shown by the decline in share of Indonesian export commodities which are highly competitive and high intra-industry linkage. This paper also find that because the commodity structure of China and the non compeeting behavior of ASEAN countries including Indonesia (tends to complement), China is relatively easier to penetrate export to the ASEAN market. The entering products from China should provide opportunities for domestic producers to increase production capacity in ASEAN, due to wider choice of relatively cheap capital goods imports.JEL Classification: C67, F14, R12Keywords: ACFTA, trade, export, GTAP, Revealed Comparative Advantage, CGE.


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