A computable general equilibrium assessment of Spain's greenhouse gas emissions policies and abatement options

Employing a recursive dynamic computable general equilibrium (CGE) model of the Spanish economy, this study aims to characterise the potential impact of Kyoto and European Union environmental policy targets on the Spanish economy up to 2020, with a focus on the agricultural sector. The model code is modified to characterise the emissions trading scheme (ETS), emissions quotas and carbon taxes, whilst emissions reductions are applied to all six registered greenhouse gases (GHGs). As extensions to this work, the study attempts to integrate the use of ‘Marginal Abatement Cost’ (MAC) curves for emissions reductions within the agricultural sector, and econometric estimates of the effects of global warming on land productivity in Spain