IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v96y2016icp314-327.html
   My bibliography  Save this article

Towards a low carbon growth in Mexico: Is a double dividend possible? A dynamic general equilibrium assessment

Author

Listed:
  • Landa Rivera, Gissela
  • Reynès, Frédéric
  • Islas Cortes, Ivan
  • Bellocq, François-Xavier
  • Grazi, Fabio

Abstract

This paper simulates the medium- and long-term impact of proposed and expected energy policy on the environment and on the Mexican economy. The analysis has been conducted with a Multi-sector Macroeconomic Model for the Evaluation of Environmental and Energy policy (Three-ME). This model is well suited for policy assessment purposes in the context of developing economies as it indicates the transitional effects of policy intervention. Three-ME estimates the carbon tax required to meet emissions reduction targets within the Mexican “Climate Change Law”, and assesses alternative policy scenarios, each reflecting a different strategy for the recycling of tax revenues. With no compensation, the taxation policy would reduce CO2 emissions by more than 75% by 2050 with respect to Business as Usual (BAU), but at high economic costs. Under full redistribution of carbon tax revenues, a double dividend arises: the policy appears beneficial both in terms of GDP and CO2 emissions reduction.

Suggested Citation

  • Landa Rivera, Gissela & Reynès, Frédéric & Islas Cortes, Ivan & Bellocq, François-Xavier & Grazi, Fabio, 2016. "Towards a low carbon growth in Mexico: Is a double dividend possible? A dynamic general equilibrium assessment," Energy Policy, Elsevier, vol. 96(C), pages 314-327.
  • Handle: RePEc:eee:enepol:v:96:y:2016:i:c:p:314-327
    DOI: 10.1016/j.enpol.2016.06.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516302956
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2016.06.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," Working Papers hal-01069515, HAL.
    2. Barker, Terry & Ekins, Paul & Foxon, Tim, 2007. "The macro-economic rebound effect and the UK economy," Energy Policy, Elsevier, vol. 35(10), pages 4935-4946, October.
    3. Mr. Michael Kumhof & Mr. Dirk V Muir, 2012. "Oil and the World Economy: Some Possible Futures," IMF Working Papers 2012/256, International Monetary Fund.
    4. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09i29kgilc0 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reynès, Frédéric, 2019. "The Cobb–Douglas function as a flexible function," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 11-17.
    2. He, Pinglin & Sun, Yulong & Niu, Hanlu & Long, Chengfeng & Li, Shufeng, 2021. "The long and short-term effects of environmental tax on energy efficiency: Perspective of OECD energy tax and vehicle traffic tax," Economic Modelling, Elsevier, vol. 97(C), pages 307-325.
    3. Bulavskaya, Tatyana & Reynès, Frédéric, 2018. "Job creation and economic impact of renewable energy in the Netherlands," Renewable Energy, Elsevier, vol. 119(C), pages 528-538.
    4. Barragán-Beaud, Camila & Pizarro-Alonso, Amalia & Xylia, Maria & Syri, Sanna & Silveira, Semida, 2018. "Carbon tax or emissions trading? An analysis of economic and political feasibility of policy mechanisms for greenhouse gas emissions reduction in the Mexican power sector," Energy Policy, Elsevier, vol. 122(C), pages 287-299.
    5. Miria A. Pigato, 2019. "Fiscal Policies for Development and Climate Action," World Bank Publications - Books, The World Bank Group, number 31051.
    6. Le Treut, Gaëlle & Lefèvre, Julien & Lallana, Francisco & Bravo, Gonzalo, 2021. "The multi-level economic impacts of deep decarbonization strategies for the energy system," Energy Policy, Elsevier, vol. 156(C).
    7. de Bruin, Kelly & Yakut, Aykut Mert, 2024. "Efficiency–equity trade-off in the Irish carbon tax: A CGE investigation of mixed revenue recycling schemes," Economic Modelling, Elsevier, vol. 134(C).
    8. Alexandri, Eva & Antón, José-Ignacio & Lewney, Richard, 2024. "The impact of climate change mitigation policies on European labour markets," Ecological Economics, Elsevier, vol. 216(C).
    9. Acosta-Pazmiño, Iván P. & Rivera-Solorio, C.I. & Gijón-Rivera, M., 2021. "Scaling-up the installation of hybrid solar collectors to reduce CO2 emissions in a Mexican industrial sector from now to 2030," Applied Energy, Elsevier, vol. 298(C).
    10. He, Pinglin & Zhang, Shuhao & Wang, Lei & Ning, Jing, 2023. "Will environmental taxes help to mitigate climate change? A comparative study based on OECD countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1440-1464.
    11. Renner, Sebastian & Lay, Jann & Greve, Hannes, 2018. "Household welfare and CO2 emission impacts of energy and carbon taxes in Mexico," Energy Economics, Elsevier, vol. 72(C), pages 222-235.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:spo:wpmain:info:hdl:2441/21l76d3ol49hnr6addquaramgh is not listed on IDEAS
    2. Fabio GRAZI & François-Xavier BELLOCQ & Frédéric REYNES & Gisella LANDA & Ivan ISLAS, 2017. "Double Dividend of Low-carbon Growth in Mexico: A Dynamic General Equilibrium Assessment," Working Paper ebdeaa62-c32a-4c84-baf0-2, Agence française de développement.
    3. repec:hal:spmain:info:hdl:2441/21l76d3ol49hnr6addquaramgh is not listed on IDEAS
    4. Gissela Landa & Frédéric Reynés & Ivan Islas & François-Xavier Bellock & Fabio Grazi, 2015. "Toward a low carbon growth in Mexico : is a double dividend possible ? A dynamic general equilibrium assessment," Working Papers hal-03459685, HAL.
    5. repec:hal:spmain:info:hdl:2441/4bof55ub0d81jp8cjpl5p0ecup is not listed on IDEAS
    6. Gissela Landa & Frédéric Reynés & Ivan Islas & François-Xavier Bellock & Fabio Grazi, 2015. "Double Dividend of Low-carbon Growth in Mexico: A Dynamic General Equilibrium Assessment," Working Papers hal-03389326, HAL.
    7. Gissela Landa & Frederic Raynes & Ivan Islas & François-Xavier Bellocq & Fabio Grazi, 2015. "Toward a low carbon growth in Mexico : is a double dividend possible ? A dynamic general equilibrium assessment," Documents de Travail de l'OFCE 2015-24, Observatoire Francais des Conjonctures Economiques (OFCE).
    8. repec:spo:wpmain:info:hdl:2441/4bof55ub0d81jp8cjpl5p0ecup is not listed on IDEAS
    9. Malmaeus, J. Mikael & Alfredsson, Eva C., 2017. "Potential Consequences on the Economy of Low or No Growth - Short and Long Term Perspectives," Ecological Economics, Elsevier, vol. 134(C), pages 57-64.
    10. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    11. Ouyang, Jinlong & Long, Enshen & Hokao, Kazunori, 2010. "Rebound effect in Chinese household energy efficiency and solution for mitigating it," Energy, Elsevier, vol. 35(12), pages 5269-5276.
    12. Jeroen Bergh, 2011. "Energy Conservation More Effective With Rebound Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 43-58, January.
    13. Stern, David I., 2020. "How large is the economy-wide rebound effect?," Energy Policy, Elsevier, vol. 147(C).
    14. John P DeLong & Oskar Burger, 2015. "Socio-Economic Instability and the Scaling of Energy Use with Population Size," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-12, June.
    15. Nyamdash, Batsaikhan & Denny, Eleanor, 2011. "The economic impact of electricity conservation policies: A case study of Ireland," MPRA Paper 28384, University Library of Munich, Germany.
    16. Cellura, Maurizio & Guarino, Francesco & Longo, Sonia & Mistretta, Marina & Orioli, Aldo, 2013. "The role of the building sector for reducing energy consumption and greenhouse gases: An Italian case study," Renewable Energy, Elsevier, vol. 60(C), pages 586-597.
    17. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2017. "A stock-flow-fund ecological macroeconomic model," Ecological Economics, Elsevier, vol. 131(C), pages 191-207.
    18. Hong, Li & Liang, Dong & Di, Wang, 2013. "Economic and environmental gains of China's fossil energy subsidies reform: A rebound effect case study with EIMO model," Energy Policy, Elsevier, vol. 54(C), pages 335-342.
    19. Chang, Juin-Jen & Wang, Wei-Neng & Shieh, Jhy-Yuan, 2018. "Environmental rebounds/backfires: Macroeconomic implications for the promotion of environmentally-friendly products," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 35-68.
    20. International Monetary Fund, 2013. "Morocco: Selected Issues," IMF Staff Country Reports 2013/110, International Monetary Fund.
    21. Costantini, Valeria & Martini, Chiara, 2010. "The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data," Energy Economics, Elsevier, vol. 32(3), pages 591-603, May.
    22. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.
    23. Qiang Du & Yi Li & Libiao Bai, 2017. "The Energy Rebound Effect for the Construction Industry: Empirical Evidence from China," Sustainability, MDPI, vol. 9(5), pages 1-11, May.
    24. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2018. "Climate Change, Financial Stability and Monetary Policy," Ecological Economics, Elsevier, vol. 152(C), pages 219-234.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:96:y:2016:i:c:p:314-327. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.