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Transitioning towards a low-carbon economy in Mexico

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  • Gissela Landa

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

This document offers an empirical application of the notion of energy transition to the Mexican economy and it takes the next step of simulating medium- and long-term impacts of proposed and future energy and fiscal policy on the environment and the Mexican economy. The starting point of the analysis is the ThreeME framework, a Multi-sectoral Macroeconomic Model based on Keynesian theory. It is designed to address the dynamics of global economic activity, energy system development and carbon emissions causing climate change. The ThreeME model is well- suited for policy assessment purposes in the context of developing economies as it informs the transitional effects of policy intervention. In particular, disequilibrium can arise in the form of involuntary unemployment, the inertia of technical systems and rigidity in labor and energy markets as a result of delayed market clearing in the goods markets and slow adjustment between prices and quantities over the simulation time path.

Suggested Citation

  • Gissela Landa, 2015. "Transitioning towards a low-carbon economy in Mexico," SciencePo Working papers Main hal-03613222, HAL.
    • Handle: RePEc:hal:spmain:hal-03613222
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03613222
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    File URL: https://hal-sciencespo.archives-ouvertes.fr/hal-03613222/document
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    References listed on IDEAS

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    1. Schubert, Samuel R., 2006. "Revisiting the oil curse: are oil rich nations really doomed to autocracy and inequality?," MPRA Paper 10109, University Library of Munich, Germany.
    2. Ian Parry & Chandara Veung & Dirk Heine, 2015. "How Much Carbon Pricing Is In Countries’ Own Interests? The Critical Role Of Co-Benefits," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(04), pages 1-26, November.
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    environment; low carbon; model;
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