Economics of Climate Policy Impacts: Applied General Equilibrium Analysis for Israel

This book provides detailed guidelines for applied policy modeler showing all steps in conducting a research. It starts with data base construction in form of social accounting matrix (SAM), continues with computable general equilibrium (CGE) modeling and concludes with potential policy analysis. Although the analyzed case study is for Israel, the research structure presented in the book can be easily adapted for any other small open economy. It is particularly relevant in face of ongoing negotiations for Kyoto-protocol successor. The policymakers should be guided by clear principles based on rigorous analytic foundations and a common understanding of the key challenges. Climate policy analysis based on applied general equilibrium modeling, as presented in the book, supplies necessary policy recommendations driven by comprehensive analytical framework.