GTAP Resources: Resource Display
| GTAP Resource #6983 |
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"Economic Impacts of Environmental Policies and Electricity Generation " by Gonzalez-Auhing, Marcos, Jesús Alonso Botero García and Hurtado Rendón Álvaro Abstract Climate change presents significant challenges in mitigating and addressing environmental damage that can have far-reaching impacts on human activities, economies, and ecosystems. As a result, the international community is actively promoting mechanisms to reduce greenhouse gas (GHG) emissions and limit the global average temperature increase to below 2°C above preindustrial levels. Currently, fossil fuels account for 63.3% of global electricity production, and the electricity sector is responsible for 25% of GHG emissions in 2019 (BP,2020). Therefore, governments worldwide are setting ambitious targets to decarbonize the electricity sector, although this transition may have implications for GDP growth, employment, household welfare, and economic structure (Bataille & Melton, 2017; Hanley et al., 2019). In this paper, we employ a hard-link approach that links a Computable General Equilibrium (CGE) model with a Bottom-up model representing an electricity spot market to analyze the economic impact of environmental policies and electricity generation scenarios of the National Energy Plan of Colombia. Our findings reveal that the scenario with Environmental Policies results in a GDP difference of 1.94% in 2040 compared to the business-as-usual (BAU) scenario. Therefore, we conclude that fossil fuel taxes should be accompanied by an increase in renewable generation to minimize the potential economic impact.. |
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- Climate change policy - Environmental policies - Domestic policy analysis - South America |
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Public Access No documents have been attached. Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
