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Reference and Policy Scenarios of CGE Model

In: GHG Emissions and Economic Growth

Author

Listed:
  • Barun Deb Pal

    (Institute for Social and Economic Change (ISEC))

  • Vijay P. Ojha

    (Institute of Management Technology)

  • Sanjib Pohit

    (CSIR–National Institute for Science Technology and Development Studies (CSIR-NISTADS))

  • Joyashree Roy

    (Jadavpur University)

Abstract

Typically, a computable general equilibrium (CGE) model is employed to develop, first and foremost, what could be called the “no-policy” or “benchmark” scenario, but is conventionally alluded to as the baseline or business-as-usual (BAU) scenario, or simply reference scenario. Subsequently, it is usually run to generate counterfactual policy scenarios, which are then compared with respect to the reference scenario to derive policy lessons. In accordance with this convention in CGE analysis, we have developed a reference scenario, without any market-based instrument for climate change mitigation, and two carbon tax scenarios in which producers are fiscally incentivised to switch to cleaner sources of energy.

Suggested Citation

  • Barun Deb Pal & Vijay P. Ojha & Sanjib Pohit & Joyashree Roy, 2015. "Reference and Policy Scenarios of CGE Model," India Studies in Business and Economics, in: GHG Emissions and Economic Growth, edition 127, chapter 7, pages 95-118, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-1943-9_7
    DOI: 10.1007/978-81-322-1943-9_7
    as

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