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A GTAP-based approach to keep track future progress in sustainability and resource efficiency

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  • Eboli, Fabio
  • Lorenza, Campagnolo

Abstract

Since the Rio+20 conference on sustainable development in 2012, the United Nations and other international institutions such as the World Bank and the OECD have started working to forge the new agenda for the post-2015 economic development. There are new challenges raised by the globalization era that sheds light on the potential conflicts within growing economies, both in developed and developing countries. Historically, most of environmental related macro-economic analysis has coped with climate change impacts and mitigation policies, as well as agricultural issues with special focus on water scarcity and food security. Nevertheless, an important indicator to monitor in order to check the actual pressure on natural resources refers also to higher efficiency in resource use. Moreover, we need to extend the economy-environment dichotomy within the broader context of sustainable and multi-dimensional development. European Union (EU), along with a leading role for tackling climate change, is now considering a broader vision for next development being smart, sustainable and inclusive. EU has implemented an effective monitoring system and defined significant targets to be achieved in the short and medium term. Moreover, EU identifies seven flagship initiatives as tools to fulfil the development strategy. Among these initiative, Resource efficiency plays an important role as allows measuring the pressure on natural capital. The main indicator in this respect is the so-called Material Productivity, computed as the ratio between GDP and raw material consumption. This paper has a quite ambitious scope. Within the CGE GTAP-based framework, we propose a new approach in which the macro-economic setting is extended with the inclusion of social and environmental indicators, in order to project future trends of a set of twenty-three sustainable development indicators covering the three sustainability areas (economy, society and environment). It is worth mentioning that w...

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  • Eboli, Fabio & Lorenza, Campagnolo, 2015. "A GTAP-based approach to keep track future progress in sustainability and resource efficiency," Conference papers 332653, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332653
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    1. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(5), pages 515-533, October.
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