GTAP Resources: Resource Display
| GTAP Resource #7529 |
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"Trade, energy efficiency and low-carbon development in Kenya" by Mwatu, Shadrack, Amsalu Woldie Yalew, Victor Nechifor and Amarendra Sahoo Abstract Greenhouse gases (GHG) emissions from the transport, energy and industrial sectors are on the rise in Kenya with projections indicating that energy production and consumption will be the leading contributors to emissions. This study examines the role of low carbon technologies in improving energy efficiency to transition the economy towards a low carbon development path. It assesses the implications of increased imports and domestic supply of energy efficiency improving machinery to reduce energy consumption to the macroeconomy (GDP, imports, exports) and to the environment (CO2 emissions) under domestic and international financing scenarios. It applies a single-country computable general equilibrium (CGE) model calibrated to the 2020 SAM for Kenya targeting transport, energy, and industrial sectors. The low carbon technology needed to enhance energy efficiency in these sectors is embedded in imports of machinery and equipment. The low carbon technology machinery and fossil fuels are substitutable under the CES production nest. The two financing options have positive impacts on GDP at factor cost, real GDP, exports, imports, domestic production, household consumption, domestic demand, and supply of low carbon technology machinery. The effects of international support are, however, more pronounced compared to financing through domestic resource mobilization. Greenhouse gas emissions fall under the two scenarios, with international resource support reducing greenhouse gas emissions by 11.41% while domestic resource mobilization reduces greenhouse gas emissions by 4.26%. The international community could commit to finance the supply of the low carbon technology commodities at lower world market prices. Kenya could commit to eliminate tariffs on imports of low carbon technology machinery. The government could target incentives at the sectors revealing a decrease in value added and output. |
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- Climate change policy - Climate impacts - Conventional energy - Environmental policies - Renewable energy - Sustainable development - Trade and the environment - Economic development - Technological change - Advances in quantitative methods |
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Public Access  Paper (408.6 KB) Replicated: 0 time(s)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
