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INDONESIA-E3: An Indonesian Applied General Equilibrium Model for Analyzing the Economy, Equity, and the Environment

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Author Info
Arief Anshory Yusuf () (Department of Economics, Padjadjaran University)

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Abstract

INDONESIA-E3 is a CGE (Computable General Equilibrium) model built to analyze the Economy, Equity,and the Environment - the three inter-related aspects of sustainable development. It is a multi-sectors, multi-households CGE model that incorporate carbon emissions and taxation and with a strong feature in distributional analysis. It can be used, for example, to study the impact of environmental reforms, such as carbon emission reduction and energy pricing policy, has on inequality and poverty for the case of Indonesia. The model captures the inter-dependence among markets in the determination of both price of commodities and factor of productions and how it will affect distribution of income. As a departure from the previous literature, the disaggregation of household by expenditure classes allows for precise estimates of the distributional impact and poverty incidence. This paper describes the model structure such as production and consumption structure, database, parameters, method for distributional analysis, possible closures, and and method for sensitivity analysis.

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File URL: http://www.equitablepolicy.org/wpaper/200804.pdf
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Publisher Info
Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200804.

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Length: 26 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Handle: RePEc:unp:wpaper:200804

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Related research
Keywords: INDONESIA-E3; Computable General Equilibrium; Equity; Environment;

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  2. Benedict J. Clements & Sanjeev Gupta & Hong-Sang Jung, 2003. "Real and Distributive Effects of Petroleum Price Liberalization: The Case of Indonesia," IMF Working Papers 03/204, International Monetary Fund. [Downloadable!]
  3. Caesar B. Cororaton & John Cockburn, 2005. "Trade Reform and Poverty in the Philippines: a Computable General Equilibrium Microsimulation Analysis," Cahiers de recherche 0513, CIRPEE. [Downloadable!]
  4. Alain De Janvry & Elisabeth Sadoulet, 2002. "World poverty and the role of agricultural technology: direct and indirect effects," The Journal of Development Studies, Taylor and Francis Journals, vol. 38(4), pages 1-26, April. [Downloadable!] (restricted)
  5. Peter Warr, 2006. "The Gregory Thesis Visits the Tropics," Departmental Working Papers 2006-03, Australian National University, Economics RSPAS. [Downloadable!]
  6. Pearson, Ken & Channing Arndt, 2000. "Implementing Systematic Sensitivity Analysis Using GEMPACK," GTAP Technical Papers 474, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
  7. Philip D. Adams & J. Mark Horridge & Brian R. Parmenter, 2000. "MMRF-GREEN: A Dynamic, Multi-Sectoral, Multi-Regional Model of Australia," Centre of Policy Studies/IMPACT Centre Working Papers op-94, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  8. Yusuf, Arief Anshory, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," MPRA Paper 1730, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  9. Arief Anshory Yusuf & Arief Ramayandi, 2008. "Reducing fuel subsidy or taxing carbon? Comparing the two instruments from the economy, environment, and equity perspective for Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200808, Department of Economics, Padjadjaran University, revised Oct 2008. [Downloadable!]
  10. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  11. Caesar B. Cororaton & John Cockburn, 2006. "WTO, Trade Liberalization, and Rural Poverty in the Philippines: Is Rice Special?," Review of Agricultural Economics, American Agricultural Economics Association, vol. 28(3), pages 370-377, 09. [Downloadable!] (restricted)
  12. Peter Warr, 2006. "The Gregory Thesis Visits the Tropics," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 177-194, 06. [Downloadable!] (restricted)
  13. Arndt, Channing, 1996. "An Introduction to Systematic Sensitivity Analysis via Gaussian Quadrature," GTAP Technical Papers 305, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
  14. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE. [Downloadable!]
  15. Hertel, Thomas & David Hummels & Maros Ivanic & Roman Keeney, 2003. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," GTAP Working Papers 1324, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
    Other versions:
  16. Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2004. "Economic Integration, Poverty and Regional Inequality in Brazil," Centre of Policy Studies/IMPACT Centre Working Papers g-149, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
    Other versions:
  17. Deaton, A. & Case, A., 1988. "Analysis Of Household Expenditures," Papers 28, World Bank - Living Standards Measurement.
  18. Iwan J. Azis, 2000. "Simulating economy-wide models to capture the transition from financial crisis to social crisis," The Annals of Regional Science, Springer, vol. 34(2), pages 251-278. [Downloadable!] (restricted)
  19. Bergman, Lars, 2005. "CGE Modeling of Environmental Policy and Resource Management," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 24, pages 1273-1306 Elsevier. [Downloadable!] (restricted)
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