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Linking health and productivity impacts to climate policy costs: a general equilibrium analysis

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  • GÖRAN ÖSTBLOM
  • EVA SAMAKOVLIS

Abstract

Much of the debate on global climate change has focused on direct costs of mitigation. Recently this debate has included the issue of ancillary benefits. The present analysis incorporates a linkage between air pollution and ancillary health benefits into a general equilibrium model applied to Sweden. Direct disutility and indirect health effects are modelled using concentration-response and contingent valuation data. Health benefits are compared in three scenarios for attaining the Swedish carbon dioxide target with alternative projected and harmful emission levels. Results show that the costs of climate policy could be overstated when not accounting for ancillary health benefits.

Suggested Citation

  • Göran Östblom & Eva Samakovlis, 2007. "Linking health and productivity impacts to climate policy costs: a general equilibrium analysis," Climate Policy, Taylor & Francis Journals, vol. 7(5), pages 379-391, September.
    • Handle: RePEc:taf:tcpoxx:v:7:y:2007:i:5:p:379-391
    DOI: 10.1080/14693062.2007.9685663
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    1. Nilsson, Charlotta & Huhtala, Anni, 2000. "Is CO2 Trading Always Beneficial? A CGE-Model Analysis on Secondary Environmental Benefits," Working Papers 75, National Institute of Economic Research.
    2. Huhtala, Anni & Samakovlis, Eva, 2003. "Green Accounting, Air Pollution and Health," Working Papers 82, National Institute of Economic Research.
    3. Östblom, Göran, 1999. "An Environmental Medium Term Economic Model - EMEC," Working Papers 69, National Institute of Economic Research.
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    1. repec:gii:giihei:ciesrp:cies_rp_26 is not listed on IDEAS
    2. Riekkola, Anna Krook & Berg, Charlotte & Ahlgren, Erik O. & Söderholm, Patrik, 2013. "Challenges in Soft-Linking: The Case of EMEC and TIMES-Sweden," Working Papers 133, National Institute of Economic Research.
    3. Sjöström, Magnus & Östblom, Göran, 2009. "Future Waste Scenarios for Sweden based on a CGE-model," Working Papers 109, National Institute of Economic Research.
    4. repec:hal:wpaper:hal-00930936 is not listed on IDEAS
    5. Mathieu-Bolh, Nathalie & Pautrel, Xavier, 2016. "Reassessing the effects of environmental taxation when pollution affects health over the life-cycle," Economic Modelling, Elsevier, vol. 52(PB), pages 310-321.
    6. Sjöström, Magnus & Östblom, Göran, 2010. "Decoupling waste generation from economic growth -- A CGE analysis of the Swedish case," Ecological Economics, Elsevier, vol. 69(7), pages 1545-1552, May.
    7. Östblom, Göran, 2009. "Nitrogen and sulphur outcomes of a carbon emissions target excluding traded allowances -- The Swedish case 2020," Ecological Economics, Elsevier, vol. 68(8-9), pages 2382-2389, June.
    8. Chiara Ravetti & Timothy Swanson & Mu Quan & Xuxuan Xie & Zhang Shiqiu, 2014. "Ancillary Benefits of GHG Abatement Policies in Developing Countries: A literature Survey," CIES Research Paper series 26-2014, Centre for International Environmental Studies, The Graduate Institute.
    9. Nathalie Mathieu-Bolh & Xavier Pautrel, 2014. "Environmental taxation, health and the life-cycle," Working Papers hal-00990256, HAL.
    10. Krook Riekkola, Anna & Ahlgren, Erik O. & Söderholm, Patrik, 2011. "Ancillary benefits of climate policy in a small open economy: The case of Sweden," Energy Policy, Elsevier, vol. 39(9), pages 4985-4998, September.

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