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The role of substitution in understanding the costs of climate change policy.

Author(s) : JORGENSON D. W., GOETTLE R. J., WILCOXEN P. J., et al.

Type of monograph: Report

Summary

This report analyses how economic models of climate change mitigation depict firms' and individuals' adjustments to changing energy prices. An economic model is used that, compared to other models, depicts a relatively complete set of substitution possibilities for consumers and producers. The most striking conclusion of the report is that the failure to depict the full range of historically-observed substitution possibilities, as many economic models do, can lead to as much as a doubling of the estimated costs of a climate change policy, an overestimate that is wholly attributable to this one pivotal assumption. A complete copy of the report is available on Pew Center's Web site.

Details

  • Original title: The role of substitution in understanding the costs of climate change policy.
  • Record ID : 2001-0597
  • Languages: English
  • Subject: Regulation, Environment
  • Publication: Pew Center on Global Climate Change - United states/United states
  • Publication date: 2000/09
  • Source: Source: 51 p. (21.5 x 28). fig.; tabl.
  • Document available for consultation in the library of the IIR headquarters only.

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