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Climate finance under a CGE framework: decoupling financial flows in GTAP database

Author

Listed:
  • Garaffa, Rafael
  • Gurgel, Angelo
  • Cunha, Bruno
  • Lucena, Andre
  • Szklo, Alexandre
  • Schaeffer, Roberto
  • Rochedo, Pedro

Abstract

Climate finance flows include the investments required to limit global warming and to adapt to climate impacts.Recent advances in Computable General Equilibrium (CGE) model hybridization techniques provide the necessary path to explore climate finance flows, in particular, a more detailed representations of the energy sector through soft-linking procedures with bottom-up models. This paper proposes a method to disaggregate capital flows from the current account balances in the GTAP database. The impacts of different greenhouse-gas (GHG) emission scenarios on green capital allocation can be tested. This is a particularly interesting feature, not only because it can help tracking climate finance in an stylized way, but as a way of exploring the soft linking procedures between CGE and bottom-up models.

Suggested Citation

  • Garaffa, Rafael & Gurgel, Angelo & Cunha, Bruno & Lucena, Andre & Szklo, Alexandre & Schaeffer, Roberto & Rochedo, Pedro, 2018. "Climate finance under a CGE framework: decoupling financial flows in GTAP database," Conference papers 332939, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332939
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    File URL: https://ageconsearch.umn.edu/record/332939/files/9120.pdf
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    References listed on IDEAS

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