Book Description

'Extending economic models to include environmental emissions and environmental policy is now commonplace. Yet, the linking is often ad hoc and based on peculiar assumptions. In this book, Rob Dellink shows how emissions and emission reduction policies for five different environmental issues can be included in a forward-looking computable general equilibrium model, building emissions into production and consumption functions. At the technical level the book is superb and stands out for its exact specification of how this is done.' - Richard S.J. Tol, Hamburg University, Germany, Free University Amsterdam, The Netherlands and Carnegie Mellon University, US This important new book enhances our understanding of the dynamic interactions between economic activity, economic growth, pollution abatement and environmental policy. It addresses one main policy problem: how can the direct and indirect costs of environmental policy for multiple pollutants be properly assessed in an applied model?