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The Distributional Impact of Climate Policy

Author

Listed:
  • Jorgenson Dale W

    (Harvard University)

  • Goettle Richard

    (Northeastern University)

  • Ho Mun S

    (Resources for the Future)

  • Slesnick Daniel T

    (University of Texas)

  • Wilcoxen Peter J

    (Syracuse University)

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.

Suggested Citation

  • Jorgenson Dale W & Goettle Richard & Ho Mun S & Slesnick Daniel T & Wilcoxen Peter J, 2011. "The Distributional Impact of Climate Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(2), pages 1-28, April.
    • Handle: RePEc:bpj:bejeap:v:10:y:2011:i:2:n:17
    DOI: 10.2202/1935-1682.2528
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    References listed on IDEAS

    as
    1. Congressional Budget Office, 2010. "The Long-Term Budget Outlook," Reports 21546, Congressional Budget Office.
    2. Burtraw, Dallas & Sweeney, Richard & Walls, Margaret, 2009. "The Incidence of U.S. Climate Policy: Alternative Uses of Revenues From a Cap-and-Trade Auction," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(3), pages 497-518, September.
    3. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer.
    4. Shammin, Md Rumi & Bullard, Clark W., 2009. "Impact of cap-and-trade policies for reducing greenhouse gas emissions on U.S. households," Ecological Economics, Elsevier, vol. 68(8-9), pages 2432-2438, June.
    5. Dale W. Jorgenson, 1997. "Welfare - Vol. 1: Aggregate Consumer Behavior," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100622, December.
    6. repec:cbo:report:215461 is not listed on IDEAS
    7. Jin, Hui & Jorgenson, Dale W., 2010. "Econometric modeling of technical change," Journal of Econometrics, Elsevier, vol. 157(2), pages 205-219, August.
    8. Congressional Budget Office, 2010. "The Long-Term Budget Outlook," Reports 21546, Congressional Budget Office.
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    Cited by:

    1. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
    2. Herman T. Wevers & Cosmina L. Voinea & Frank de Langen, 2020. "Social Entrepreneurship as a Form of Cross-Border Cooperation: Complementarity in EU Border Regions," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    3. Wang, Feng & Liu, Xiying & Nguyen, Tue Anh, 2018. "Evaluating the economic impacts and feasibility of China's energy cap: Based on an Analytic General Equilibrium Model," Economic Modelling, Elsevier, vol. 69(C), pages 114-126.
    4. Boguslawa Bek-Gaik & Anna Surowiec, 2022. "The Quality of Business Model Disclosure in Integrated Reporting: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-26.
    5. Jorgenson, Dale W., 2016. "Econometric general equilibrium modeling," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 436-447.

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