Forecasting The Effects On Business Of Global Warming Policies

FoREcasTing ThE EFFEcTs on BUsinEss oF gLoBaL WaRming PoLiciEs By Jon David vasché Describes what steps have been taken and/or are being considered to combat global warming … policies to combat global warming will present a challenge to forecasters as they will affect firms’ input and output prices, labor costs, product demands, outputs, and employment … discusses how the computable general equilibrium model can help to deal with such a challenge. A A rapidly emerging issue for business economists is forecasting the effects on businesses of policies to combat global warming by reducing greenhouse gas (GHG) emissions, particularly carbon dioxide. In California, for example, legislation enacted in 2006 provides for rolling back annual emissions to their 1990 level according to a specified timetable. The current plan for accomplishing this includes such actions as tightening up vehicle emissions standards, improving energy efficiency in buildings, increasing the use of low-carbon fuel by businesses and individuals, using more renewable energy for producing electricity, and adopting a cap-and-trade system for reducing emissions in a most cost-efficient manner. Various ...