Proceedings of the 2015 International Conference on Modeling, Simulation and Applied Mathematics

The Role of Government Climate Policy in an Oil Price Shock: A CGE Simulation Analysis

Authors
Saeed Solaymani, Nora Yusma Bte Mohamed Yusof, Arash Yavari
Corresponding Author
Saeed Solaymani
Available Online August 2015.
DOI
https://doi.org/10.2991/msam-15.2015.60How to use a DOI?
Keywords
component; Climate policy; oil prices shock; computable general equilibrium (CGE); Malaysia
Abstract
Malaysia has made a pledge to reduce its 2005 GDP emission intensity levels by up to 40% by 2020 as its contribution to combat climate change. One of the proposed policies to achieve this goal is carbon taxation. We used a computable general equilibrium model to analyse the results of three scenarios - the impact of an oil price shock, the implementing of the climate policy on the Malaysian economy and the oil price rise when the Malaysian climate policy is implemented. We also attempt to assess how these scenarios contribute to the mitigation of rebound effect. The Malaysian climate policy implies a gain on the Malaysian economy of around 0.8% of GDP. The oil price shock in the presence of the Malaysian climate policy implied an additional gain on it of 0.2% of GDP (making a total gain of 1% of GDP), but this is equal to the 1% of GDP that Malaysia would lose from the oil price rise in the absence of the climate policy. This is implying that the climate policy is a potential economic protection for Malaysia. The climate policy and oil price shock would lead to mitigation of rebound effect in Malaysian economy.
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Proceedings
2015 International Conference on Modeling, Simulation and Applied Mathematics
Part of series
Advances in Intelligent Systems Research
Publication Date
August 2015
ISBN
978-94-6252-104-9
ISSN
1951-6851
DOI
https://doi.org/10.2991/msam-15.2015.60How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Saeed Solaymani
AU  - Nora Yusma Bte Mohamed Yusof
AU  - Arash Yavari
PY  - 2015/08
DA  - 2015/08
TI  - The Role of Government Climate Policy in an Oil Price Shock: A CGE Simulation Analysis
BT  - 2015 International Conference on Modeling, Simulation and Applied Mathematics
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/msam-15.2015.60
DO  - https://doi.org/10.2991/msam-15.2015.60
ID  - Solaymani2015/08
ER  -