GTAP Resources: Resource Display
| GTAP Resource #7831 |
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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 increased financing of solar and wind capacity by multilateral development banks (MDBs) in emerging and developing economies (EMDEs) can expand electricity supply, support economic development, and reduce 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) rises from a business-as-usual (BAU) level of $2.12 billion (2022 USD) to three alternative levels spanning $340.26–$489.58 billion (2022 USD) during 2023–2030. Across 14 aggregated EMDEs, median changes in electricity supply in 2030 relative to BAU are positive, ranging from 1.63–2.18%, depending on the policy scenario. Median changes in GDP are positive, ranging from 0.11–0.12%, depending on the scenario, while median changes in consumption are negative, ranging from -0.29% to -0.12%, depending on the scenario. When financing takes the form of grants rather than loans, the median changes in GDP are positive and 0.14% for each of the three scenarios, and the median changes in consumption are positive, ranging from 0.12–0.14%, depending on the scenario. Globally, total CO2 emissions fall by 0.46–0.55%, depending on the scenario. These findings indicate that increasing MDB financing for solar and wind can boost electricity supply in EMDEs, generate economic gains when provided as grants, 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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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  Paper (696.6 KB) Replicated: 0 time(s) Presentation (784.3 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
