Unraveling the Puzzle: Differing Economic Estimates of Climate Policy

Many analyses have been performed of the effects of reducing greenhouse gas emissions on the U.S. economy. The vast majority show a negative impact on GDP, but the results differ in magnitude and timing. These differences arise from the use of different types of models, different model structures, and different assumptions. It is important to understand these differences to have a good idea of what the models are telling us about the impact of policy choices. Dr. Canes discussed the major causes of the differences and what inferences can be drawn from them.

Dr. Michael E. Canes is a Senior Research Fellow at the Logistics Management Institute in McLean,Virginia. He previously was Vice President and Chief Economist of the American Petroleum Institute, where he sponsored early development of the Charles River Associates Multi-Sector Multi-Region Trade (MS-MRT) model for climate change policy analysis. He also has been a member of the faculty of the Graduate School of Management of the University of Rochester, NY. Dr. Canes has a Ph.D. in Economics from UCLA and an MSc in Economics from the London School of Economics.

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