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A dynamic CGE modelling approach for analyzing trade-offs in climate change policy options: the case of Green Climate Fund

Author

Listed:
  • Antimiani Alessandro

    (Istituto Nazionale di Economia Agraria (INEA), Roma (Italy).)

  • Valeria Costantini

    (Department of Economics, Roma Tre University, Roma (Italy).)

  • Anil Markandya

    (Basque Centre for Climate Change (BC3), Spain.)

  • Chiara Martini

    (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.)

  • Alessandro Palma

    (Department of Economics, Roma Tre University, Roma (Italy).)

  • Maria Cristina Tommasino

    (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.)

Abstract

We investigate the trade-offs between economic growth and low carbon targets for developing and developed countries in the period up to 2035. Policy options are evaluated with an original version of the dynamic CGE model GDynE. Abatement costs appear to be strongly detrimental to conomic growth for developing countries. We investigate options for reducing these costs that are consistent with a green growth strategy. We show that Green Climate Fund financed through a levy on carbon taxation can benefit all parties, and larger benefits are associated with investment of the Green Climate Fund to foster energy efficiency in developing countries.

Suggested Citation

  • Antimiani Alessandro & Valeria Costantini & Anil Markandya & Chiara Martini & Alessandro Palma & Maria Cristina Tommasino, 2014. "A dynamic CGE modelling approach for analyzing trade-offs in climate change policy options: the case of Green Climate Fund," SEEDS Working Papers 1614, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2014.
    • Handle: RePEc:srt:wpaper:1614
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    Cited by:

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    2. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2021. "Investigating Alternative Poultry Trade Policies in the Context of African Countries: Evidence from Ghana," 2021 Conference, August 17-31, 2021, Virtual 315173, International Association of Agricultural Economists.
    3. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2020. "Tariff Escalation and Import Bans in the Economic Partnership Agreement between the EU and West Africa," Conference papers 333239, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Wang, Ying, 2021. "Fund-raising and Allocation of Green Climate Fund: Taking Global Pareto Optimality and Fiscal Balance into Consideration," MPRA Paper 106861, University Library of Munich, Germany.
    5. Markandya, A. & Antimiani, A. & Costantini, V. & Martini, C. & Palma, A. & Tommasino, M.C., 2015. "Analyzing Trade-offs in International Climate Policy Options: The Case of the Green Climate Fund," World Development, Elsevier, vol. 74(C), pages 93-107.

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    More about this item

    Keywords

    Climate Change Policies; Green Growth; Developing Countries; Dynamic CGE Energy Model; Green Climate Fund.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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