October 24, 2010

Long-Run E ects of Post-Kyoto Policies: Applying a Fully Dynamic CGE model with Heterogeneous Capital

by Lucas Bretschger, Roger Ramery and Florentine Schwarkz

- The paper develops a new type of CGE model to predict the effects of carbon policies on consumption, welfare, and sectoral development in the long run. Growth is fully endogenous, based on increasing specialization in capital varieties, and specific in each sector of the economy. The benchmark scenario is calculated based on the endogenous gains from specialization which carry over to policy simulation.

Bretschger, L., R. Ramery and F. Schwarkz (2010). "Endogenous Growth, Asymmetric Trade and Resource Taxation." CER-ETH, Center of Economic Research, ETH Z├╝rich, Economics Working Paper Series, Working Paper No. 10/129, Apr 2010.