The distributional impact of climate policy

Dale W. Jorgenson; Richard Goettle; Mun S. Ho; Daniel T. Slesnick; Peter J. Wilcoxen

doi:10.2202/1935-1682.2528

The distributional impact of climate policy

Dale W. Jorgenson, Richard Goettle, Mun S. Ho, Daniel T. Slesnick, Peter J. Wilcoxen

Department of Public Administration

Research output: Contribution to journal › Article › peer-review

12 Scopus citations

Abstract

The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.

Original language	English (US)
Article number	17
Journal	B.E. Journal of Economic Analysis and Policy
Volume	10
Issue number	2
DOIs	https://doi.org/10.2202/1935-1682.2528
State	Published - 2011

Keywords

climate policy
demographic groups
distribution
goods
leisure

ASJC Scopus subject areas

Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)

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10.2202/1935-1682.2528

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title = "The distributional impact of climate policy",

abstract = "The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.",

keywords = "climate policy, demographic groups, distribution, goods, leisure",

author = "Jorgenson, {Dale W.} and Richard Goettle and Ho, {Mun S.} and Slesnick, {Daniel T.} and Wilcoxen, {Peter J.}",

note = "Funding Information: ∗We are grateful to Jon Samuels, Johns Hopkins University, for help with national accounting data and Hui Jin, International Monetary Fund, for estimation of the production model. We are also grateful for valuable comments from participants in Energy Modeling Forum 22, Climate Change Scenarios, the 2009 AERE Workshop on Energy and the Environment, and the 2009 Woods Hole meeting of the Governing Board of the National Research Council. Financial support for this research was provided by the Climate Economics Division of the Environmental Protection Agency. The usual disclaimer applies.",

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doi = "10.2202/1935-1682.2528",

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AU - Goettle, Richard

AU - Ho, Mun S.

AU - Slesnick, Daniel T.

AU - Wilcoxen, Peter J.

N1 - Funding Information: ∗We are grateful to Jon Samuels, Johns Hopkins University, for help with national accounting data and Hui Jin, International Monetary Fund, for estimation of the production model. We are also grateful for valuable comments from participants in Energy Modeling Forum 22, Climate Change Scenarios, the 2009 AERE Workshop on Energy and the Environment, and the 2009 Woods Hole meeting of the Governing Board of the National Research Council. Financial support for this research was provided by the Climate Economics Division of the Environmental Protection Agency. The usual disclaimer applies.

PY - 2011

Y1 - 2011

N2 - The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.

AB - The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.

KW - climate policy

KW - demographic groups

KW - distribution

KW - goods

KW - leisure

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The distributional impact of climate policy

Abstract

Keywords

ASJC Scopus subject areas

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