| ID | 150000 |
| Title Proper | Towards a low carbon growth in Mexico |
| Other Title Information | is a double dividend possible? a dynamic general equilibrium assessment |
| Language | ENG |
| Author | Rivera, Gissela Landa ; Reynès, Frédéric ; Cortes, Ivan Islas ; Grazi, Fabio |
| Summary / Abstract (Note) | 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. |
| `In' analytical Note | Energy Policy Vol. 96, No.96; Sep 2016: p. 314–327 |
| Journal Source | Energy Policy 2016-09 96, 96 |
| Key Words | Climate Policy ; Energy System ; Double Dividend ; Carbon Tax ; Energy-Economy Modeling |