GTAP Resources: Resource Display
| GTAP Resource #7913 |
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"Beyond GDP for CGE Policy Analysis: A Well-being and Footprint Benchmark for GTAP-RD and EPPA" Authors: Berthet, Etienne, Ilaria Fusacchia and Jennifer Morris Abstract GDP remains the dominant progress metric, yet it sidesteps the non-market foundations of prosperity and the resource pressures that economic activity generates. Computable general equilibrium (CGE) models inherit this gap: their baselines are rarely tested against multidimensional well-being outcomes or consumption-based environmental footprints. We build a pathway-based empirical benchmark and connect it to GTAP-RD and MIT EPPA. Using a 173-country annual panel for 2000–2020 (~98% of world population), we combine Social Progress Index outcomes with Decent Living Standards (DLS) provisioning indicators and match each country to consumption-based footprints for greenhouse gases, biodiversity pressure, and scarce water drawn from a global multi-regional input–output accounting. Hierarchical time-series clustering on these joint trajectories yields eleven HDI-graded development pathways. Within each pathway we test panel cointegration between footprint and GDP (and, where data permit, TFP), estimating long-run elasticities by Fully Modified OLS and short-run dynamics via a panel error-correction model. Three questions organise the analysis. RQ1: how do footprints track GDP in the short and long run along each pathway, and which show relative or absolute decoupling? Every retained pathway displays relative decoupling (0 < ß1 < 1); none reaches absolute decoupling, and countries at identical HDI diverge sharply on productivity channels and adjustment speeds. RQ2: do GTAP-RD and EPPA baselines replicate these pathway-specific footprint–GDP responses? RQ3: does restructuring final demand toward DLS bundles, via calibrated preference shifters under an add-up constraint, change the scale and composition of simulated footprints? Together, the benchmark supplies pathway elasticities for model validation and DLS target vectors for basic-needs provisioning inside the CGE policy toolchain. |
| Resource Details () | GTAP Keywords | ||||||||||||||||
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- Sustainable development - GTAP Data Base and extensions - Economic development - Economic growth - Calibration and parameter estimation - Econometric methods - Global |
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Public Access  Paper (53.3 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
