Simulation of climate policies and their effects: a dynamic analysis for Brazil and Annex I countries of the Kyoto Protocol

Abstract

This study aimed to evaluate the interrelationships between climate policies, technological spillovers, economic growth and welfare for the following selected regions: Brazil and Annex I countries of the Kyoto Protocol. For this, an adaptation of the Model of Investment and Technological Development (Mind-RS) was used, which through simulations allows us to analyze the main variables that make up the economic system in a scenario of climate change. The results showed that for any climate policy scenario, mitigation costs are insignificant for economic growth and, above all for the wellbeing, and technological spillovers can further reduce the costs of mitigation.