GTAP Resources: Resource Display
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"Scaling MDB Renewable Energy Finance: Economic and Environmental Implications" Authors: Pape, Nicholas, Ian Sue Wing, Rishikesh Bhandary and Kevin Gallagher Abstract We quantify how much increased financing of solar and wind capacity by multilateral development banks (MDBs) in emerging and developing economies (EMDEs), beyond business-as-usual (BAU) projections, can expand electricity supply while supporting economic development and reducing global CO2 emissions. Using two interconnected analytical models and a technology-rich computable general equilibrium (CGE) model of the global economy in 2030, we evaluate three scenarios in which annual MDB financing for solar and wind across EMDEs (excluding China and Russia) is projected to rise from a BAU level of $2.12 billion to between $340.26 billion and $489.58 billion (2022 USD) during 2023-2030. Across the 14 aggregated EMDEs, median electricity supply in 2030 increases by 1.63-2.18% relative to BAU. We find mixed economic outcomes: median GDP rises by 0.11-0.12%, while median welfare declines by 0.12-0.29%. When the financing takes the form of grants rather than loans, median GDP rises by 0.14% and median welfare increases by 0.12-0.14%. Globally, total CO2 emissions fall by 0.46-0.55%. These findings indicate that increasing MDB financing of solar and wind can increase electricity supply in EMDEs, generate economic gains when financed through grants rather than loans, and contribute to reductions in global CO2 emissions. |
| Resource Details () | GTAP Keywords | ||||||||||||||||
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- Climate change policy - Renewable energy - Sustainable development - Partial and general equilibrium models |
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Public Access  Scaling MDB Renewable Energy Finance: Economic and Environmental Implicatio (557.6 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: 4/30/2026 12:56:16 PM
