Regional Land Development Control as a Global Warming Prevention Policy : A Recursive Computable General Equilibrium Approach

초록

This paper is motivated by the question, "Is land development control policy a meaningful policy tool for the reduction of global warming?" The paper attempts to construct a recursive two-region computable general equilibrium (CGE) model to address the global warming issue. Two policies are examined using the model: 1) the first involves the imposition of the carbon dioxide tax on an economy and 2) the second relates to the land development control in order to protect green areas from urban area expansion. This paper specifically analyzes the impacts of these two policies on an economy in terms of people’s welfare, GDP economic efficiency, and the quantity of carbon dioxide in the atmosphere, demonstrating that the development control policy could be a meaningful tool against global warming.