Abstract
We present an optimal growth model for Norway with a carbon dioxide emission constraints, implemented as a constraint on oil consumption. The simulation period is 1988 to 2004, including an infinite horizon approximation in the form of a terminal value function. A macro commodity is produced employing capital, oil and electricity. Norway receives exogenous oil revenues. Carbon dioxide emissions are constrained by 10 to 30% of the unconstrained reference case in year 2000. In spite of a smooth emission constraint path, the consumption level is immediately reduced and the saving immediately increased due to the intertemporal adjustment. The optimal carbon tax causes an oil price increase of 9 to 44% in year 2000. Increasing the initial financial wealth by around 70 to 90% of the oil revenue present value keeps the constrained utility level at the unconstrained utility level. 16 refs., 12 figs.
Torvanger, A;
[1]
Brekke, K A
[2]
- Stiftelsen for Samfunns- og Naeringslivsforskning, Oslo (Norway)
- Statistisk Sentralbyraa, Oslo (Norway)
Citation Formats
Torvanger, A, and Brekke, K A.
An optimal growth model for Norway with a carbon dioxide emissions constraint.
Norway: N. p.,
1992.
Web.
Torvanger, A, & Brekke, K A.
An optimal growth model for Norway with a carbon dioxide emissions constraint.
Norway.
Torvanger, A, and Brekke, K A.
1992.
"An optimal growth model for Norway with a carbon dioxide emissions constraint."
Norway.
@misc{etde_10140254,
title = {An optimal growth model for Norway with a carbon dioxide emissions constraint}
author = {Torvanger, A, and Brekke, K A}
abstractNote = {We present an optimal growth model for Norway with a carbon dioxide emission constraints, implemented as a constraint on oil consumption. The simulation period is 1988 to 2004, including an infinite horizon approximation in the form of a terminal value function. A macro commodity is produced employing capital, oil and electricity. Norway receives exogenous oil revenues. Carbon dioxide emissions are constrained by 10 to 30% of the unconstrained reference case in year 2000. In spite of a smooth emission constraint path, the consumption level is immediately reduced and the saving immediately increased due to the intertemporal adjustment. The optimal carbon tax causes an oil price increase of 9 to 44% in year 2000. Increasing the initial financial wealth by around 70 to 90% of the oil revenue present value keeps the constrained utility level at the unconstrained utility level. 16 refs., 12 figs.}
place = {Norway}
year = {1992}
month = {Sep}
}
title = {An optimal growth model for Norway with a carbon dioxide emissions constraint}
author = {Torvanger, A, and Brekke, K A}
abstractNote = {We present an optimal growth model for Norway with a carbon dioxide emission constraints, implemented as a constraint on oil consumption. The simulation period is 1988 to 2004, including an infinite horizon approximation in the form of a terminal value function. A macro commodity is produced employing capital, oil and electricity. Norway receives exogenous oil revenues. Carbon dioxide emissions are constrained by 10 to 30% of the unconstrained reference case in year 2000. In spite of a smooth emission constraint path, the consumption level is immediately reduced and the saving immediately increased due to the intertemporal adjustment. The optimal carbon tax causes an oil price increase of 9 to 44% in year 2000. Increasing the initial financial wealth by around 70 to 90% of the oil revenue present value keeps the constrained utility level at the unconstrained utility level. 16 refs., 12 figs.}
place = {Norway}
year = {1992}
month = {Sep}
}