Unemployment effects of climate policy

This paper models the unemployment effects of restrictions on greenhouse gas emissions, embodying two of the most significant types of short-term economic imperfections that generate unemployment: sectoral rigidities in labor mobility and sectoral rigidities in wage adjustments. A labor policy is also analyzed that would reduce the direct negative economic effects of the emissions restrictions.The politics of limiting greenhouse gas emissions are often dominated by relatively short-term considerations. Yet the current economic modeling of emissions limitations does not embody economic features that are likely to be particularly important in the short term, in particular, the politically sensitive unemployment rate. Moreover, only a few of these studies also consider policies that would offset the negative direct economic effects of emissions restrictions. For plausible estimates of the parameters, the model shows that, with the labor market imperfections, if there were no offsetting policies, the reductions in GNP in the U.S. in the first 10 years after emissions restrictions were imposed would be as much as 4%. However, if there were two policies, instead of just one: a counteracting labor market policy, as well as the emissions restrictions, the negative direct economic effects could be completely eliminated.     

XII Ecdysone Workshop July 22–26, 1996 Barcelona,Spain

XII Ecdysone Workshop July 22–26, 1996 Barcelona, Spain     

Effects of atmospheric gases on terrestrial plants and critical levels of air pollution

An integrated approach was developed to determine the critical levels of air pollution for ecological standard setting based on the unified index of biological response, by taking into account the effects of all pollution components simultaneously. An empirical model of plant productivity was taken as the dose response model for gaseous pollutant effect on the productivity of trees and the annual productivity of plants was used as the above mentioned index. The CO2 increase in the lower atmosphere was considered to potentially increase plant productivity and NO2 was estimated as neutral while being dangerous for plants as a chemical precursor of ozone or as a source of acidification. The maximum permissible chronic O3 and SO2 levels for trees were estimated and it was found that O3 is much more phytotoxic, as compared to SO2 , with a rather narrow range of permissible levels (27-33 ppb) which complicates its monitoring and control.