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GTAP Resources: Resource Display

GTAP Resource #6243

"Holistic approach to assess the impact of green Investments using the MAGNET model"
by Smeets Kristkova, Zuzana, Hao (David) Cui, Andrzej Tabeau, Hans van Meijl, Kirsten Boysen-Urban, Robert M'barek and Heleen Bartelings


Abstract
The Paris Agreement, adopted by 196 Parties, aims to limit global warming to well below 2, preferably to 1.5 degrees Celsius. In this context, the European Union has launched its new growth strategy, which aims to transform the EU into a resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050. Given the ambitious goals put forward, there is a need to evaluate the ex-ante impacts of a potential investment boost in low-carbon economy (green investments).
Being a multi-region multi-sector global CGE model with a GTAP core and various modules, MAGNET has been well equipped to analyse “food-land-energy-water-climate nexus”. In case of investments driven economic development, special insights in sector specific investment allocation, their financing and productivity effect is required.
This paper provides an overview of the methodological developments implemented in the MAGNET model to improve the modelling of investments. Using green energy sectors as an example, we simulate a set of exploratory scenarios to investigate the effects of increasing sector-specific investments under different assumptions of financing and productivity effects resulting from technology learning.
The results show that the financing alternatives play an important role in determining the potential GDP effects of the investment boost, with significant spillover effects across different regions of the world. According to the expectations, technology learning plays an important role in fostering green transition when clean energy sectors become more competitive and replace the traditional sources of energy. Positive spillover effects are also noted within the economy, as stimulating green sectors increases demand and production of primary agriculture as an important provider of the biomass resources for green transition.




Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 1990
Version:
Created: Smeets Kristkova, Z. (4/13/2021)
Updated: Smeets Kristkova, Z. (4/15/2021)
Visits: 44
- Dynamic modeling
- Bioenergy
- Climate change policy
- European Union


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