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Including the Feedback of Local Health Improvement in Assessing Costs and Benefits of GHG Reduction

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  • Jennifer Chung–I Li

Abstract

Ancillary benefits of greenhouse gas (GHG) mitigation refer to benefits from GHG mitigation in addition to lowered adverse impacts of global climate change. A major ancillary benefit of GHG mitigation is reduced local air toxins, which improves health. The purpose of the study is not to determine whether ancillary benefits of GHG mitigation can or cannot justify GHG mitigation. Rather, we discuss how an important benefit of addressing GHG emission — the local health effects — should and can be incorporated using the approaches put forth. A CGE model is used for simulating a carbon tax policy. A health effects submodel takes the local air emissions output from the CGE model and assesses the implications for ambient air concentration, health, and labor supply. Labor and medical expenditure changes are fed back into the economy. Applying this approach to Thailand, when health feedback is included we find that: (1) negative impact on GDP under a carbon tax drops by 45%, and (2) welfare improves for households and cleaner producers.

Suggested Citation

  • Jennifer Chung–I Li, 2002. "Including the Feedback of Local Health Improvement in Assessing Costs and Benefits of GHG Reduction," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 14(3), pages 282-304, November.
    • Handle: RePEc:bla:revurb:v:14:y:2002:i:3:p:282-304
    DOI: 10.1111/1467-940X.00058
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    Cited by:

    1. Beltrán, Allan & Alatorre, José Eduardo & Ferrer, Jimy & Galindo, Luis Miguel, 2017. "Efectos potenciales de un impuesto al carbono sobre el producto interno bruto en los países de América Latina: estimaciones preliminares e hipotéticas a partir de un metaanálisis y una función de tran," Documentos de Proyectos 41867, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Jensen, Henning Tarp & Keogh-Brown, Marcus R. & Shankar, Bhavani & Aekplakorn, Wichai & Basu, Sanjay & Cuevas, Soledad & Dangour, Alan D. & Gheewala, Shabbir H. & Green, Rosemary & Joy, Edward J.M. & , 2019. "Palm oil and dietary change: Application of an integrated macroeconomic, environmental, demographic, and health modelling framework for Thailand," Food Policy, Elsevier, vol. 83(C), pages 92-103.
    3. Inge Mayeres & Denise Van Regemorter, 2008. "Modelling the Health Related Benefits of Environmental Policies and Their Feedback Effects: A CGE Analysis for the EU Countries with GEM-E3," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 135-150.
    4. Östblom, Göran & Samakovlis, Eva, 2004. "Costs of Climate Policy when Pollution Affects Health and Labour Productivity. A general Equilibrium Analysis Applied to Sweden," Working Papers 93, National Institute of Economic Research.
    5. Marcus Keogh-Brown & Henning Tarp Jensen & Bhavani Shankar & Sanjay Basu & Soledad Cuevas & Alan Dangour & Shabbir H. Gheewala & Rosemary Green & Edward Joy & Nalitra Thaiprasert & Richard Smith, 2017. "An integrated macroeconomic, demographic and health modelling framework for palm oil policies in Thailand," EcoMod2017 10569, EcoMod.
    6. Henning Jensen & Marcus Keogh-Brown & Richard Smith & Zaid Chalabi & Alan Dangour & Mike Davies & Phil Edwards & Tara Garnett & Moshe Givoni & Ulla Griffiths & Ian Hamilton & James Jarrett & Ian Rober, 2013. "The importance of health co-benefits in macroeconomic assessments of UK Greenhouse Gas emission reduction strategies," Climatic Change, Springer, vol. 121(2), pages 223-237, November.
    7. Jared C.Carbone & Yuzhou Shen, 2019. "Assessing the Benefits of Air-Quality Improvements in General Equilibrium: A Review," Working Papers 2019-05, Colorado School of Mines, Division of Economics and Business.

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