Back

A General Equilibrium Analysis of the Effects of Carbon Emission Restrictions on Economic Growth in a Developing Country

Charles R. Blitzer, Richard S. Eckaus, Supriya Lahiri, and Alexander Meeraus

June 1990

Charles R. Blitzer, Richard S. Eckaus, Supriya Lahiri, and Alexander Meeraus, June 1990

A general equilibrium approach, in the form of a multisector, intertemporal programming model, is used to analyze the effects on the growth of the Egyptian economy of carbon emissions constraints that differ across sectors and over time. The model embodies significant substitution possibilities among factors, including fuels.
It is found that any substantial reduction in the rate of emissions has correspondingly important impacts on economic growth. The abatement of carbon emissions would, therefore, create major economic problems. Economy-wide constraints are, however, less restrictive than the same level of constraints imposed on particular sectors.

 

For Sponsors Only

As a benefit to our Associates, the latest Working Papers are embargoed for a period of up to six months before becoming accessible to the public. If you are interested in becoming an Associate or learning more about the benefits of sponsorship, please click here.