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 leading contributors to emissions. This study examines the role of low carbon technologies in improving energy efficiency to transition the economy to a low carbon development. It assesses the implications of increased imports and supply of energy efficiency improving machinery to reduce energy consumption to the economy and the environment under domestic and international financing scenarios. It applies a single-country CGE model calibrated to the 2020 SAM for Kenya targeting the 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 as inputs. The low carbon technology machinery and fossil fuels are imperfectly 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 more pronounced compared to those for financing through domestic resource mobilization. International and domestic financial resource mobilization reduce greenhouse gas emissions by 3.99% and 4.26% respectively. The international community to finance supply of low carbon technology commodities at lower world market prices. Kenya to eliminate tariffs on imports of low carbon technology machinery. Kenya to target incentives at transport, mining, and non-metallic minerals sectors whose value-added and output decline under the two financing options. Short-term subsidies to cushion consumers against welfare erosion from rising energy and transport prices. Incentives to target developing skills needed to support domestic production of low carbon technologies. |
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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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Last Modified: 6/23/2025 2:25:40 PM