@article{Khabbazan:333313,
      recid = {333313},
      author = {Khabbazan, Mohammad M. and Von Hirschhausen, Christian},
      title = {Implication of the Paris Targets for the Middle East  Through Different Cooperation Options},
      address = {2021},
      year = {2021},
      note = {Presented during the 24th Annual Conference on Global  Economic Analysis (Virtual Conference)},
      abstract = {The core of the 36th round of Energy Modeling Forum  project shows that it is more likely that major fossil-fuel  exporters, such as the Middle East, are highly affected  because of the decrease in fossil-fuel extractions required  for the worldwide fulfillment of the Paris agreement. To  analyze these general findings in-depth, we employ a  multi-region, multi-sector computable general equilibrium  model of global trade and energy to examine the effects of  implementing the Paris agreement with a focus on the Middle  East which is further disaggregated into Iran, Saudi  Arabia, the rest of net fossil fuel exporting countries  (XFE), and the rest of countries (XNE). After examining the  abatement costs for the regions, we apply four emission  reduction targets, ranging from a low ambition level to a  high ambition level. We develop comprehensive scenarios  covering several cooperation options within the Middle East  and between the Middle East and regions outside. The  results show that Iran has the lowest marginal abatement  cost in the Middle East, followed by XNE, XFE, and Saudi  Arabia. If the Middle East does not implement any climate  policy, the welfare losses can be slightly compensated due  to a carbon leakage to the Middle East. The cooperations  within the Middle East are not welfare increasing for the  region as a whole when Iran mostly benefits from such a  cooperation whereas Saudi Arabia loses welfare. The Middle  East benefits from a global cooperation and the cooperation  with Europe, but the cooperation with China, India, or  Russia can be welfare decreasing.},
      url = {http://ageconsearch.umn.edu/record/333313},
}