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The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application
GREDI, Department of economics, Faculté d'administration, Université de Sherbrooke, Sherbrooke, QC J1K 2R1, Canada
European Centre for Advanced Research in Economics and Statistics, Free University of Brussels, Brussels, 1050, Belgium
* Author to whom correspondence should be addressed.
Received: 1 May 2013; in revised form: 23 May 2013 / Accepted: 7 June 2013 / Published: 20 June 2013
Abstract: In this paper, we present a distributional impact analysis of climate change policies envisaged or implemented to reduce greenhouse gas emissions in Senegal. We consider policies implemented in developed countries and their impact on a developing country. Moreover, we simulate the diminishing productivity of agricultural land as a potential result of climate change (CC) for Senegal. This country is exposed to the direct consequences of CC and is vulnerable to changes in world prices of energy, given its lack of substitution capacity. Past researches have shown that countries with this profile will bear the greatest burden of CC and its mitigation policies. Our results reveal slight increases in poverty when the world price of fossil fuels increases and the negative impact is further amplified with decreases in land productivity. However, subsidizing electricity consumption to protect consumers from world price increases in fossil fuels is shown to provide a weak cushion to poverty increase.
Keywords: global warming; environmental policies; income distribution; developing countries
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MDPI and ACS Style
Boccanfuso, D.; Savard, L.; Estache, A. The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application. Sustainability 2013, 5, 2727-2750.
Boccanfuso D, Savard L, Estache A. The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application. Sustainability. 2013; 5(6):2727-2750.
Boccanfuso, Dorothée; Savard, Luc; Estache, Antonio. 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application." Sustainability 5, no. 6: 2727-2750.