Distributional impact of developed countries CC policies on Senegal : A macro-micro CGE application

In this paper we present an analysis of distributional impact analysis of climate change policies envisaged or implemented to reduce greenhouse gasses emissions on Senegal. We consider policies implemented in developed countries (namely the ones engaged in the Kyoto protocol) and their impact on a developing country. Moreover, we simulate a diminishing productivity of land used in agriculture as a potential result of CC for Senegal. This country is exposed to the direct consequences of CC and is vulnerable to changes in world prices of energy given is lack of substitution capacity. According to Winters et al (1998), countries with this profile will bear the greatest burden of CC and its mitigating policies. Our results reveal slight increases in poverty when world price of fossil fuels increase and the negative impact are amplified with decreases in land productivity. However, subsidizing electricity consumption to protect consumers for price world price increases in fossil fuels provides a weak cushion to poverty increase.