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| Lanzi, Elisa; Sue Wing, Ian. |
| This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The issue is explored by means of a theoretical model, a numerical analysis and a computable general equilibrium (CGE) model. Considering the three approaches together is fundamental in obtaining theory-compatible policy-relevant results. The model outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore, it is important that, especially for the analysis of short-term environmental regulations, the issue of capital malleability is taken into... |
| Tipo: Working or Discussion Paper |
Palavras-chave: General Equilibrium; CGE Models; Climate Change Policy; Environmental Economics and Policy; C68; D58; H22; Q43. |
| Ano: 2010 |
URL: http://purl.umn.edu/59476 |
