IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332939.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332939/files/9120.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Angel Aguiar & Badri Narayanan & Robert McDougall, 2016. "An Overview of the GTAP 9 Data Base," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 181-208, June.
    2. Harald Winkler & Navroz K. Dubash, 2016. "Who determines transformational change in development and climate finance?," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 783-791, August.
    3. Joeri Rogelj & Michel den Elzen & Niklas Höhne & Taryn Fransen & Hanna Fekete & Harald Winkler & Roberto Schaeffer & Fu Sha & Keywan Riahi & Malte Meinshausen, 2016. "Paris Agreement climate proposals need a boost to keep warming well below 2 °C," Nature, Nature, vol. 534(7609), pages 631-639, June.
    4. Taylor, Lance, 2016. "CGE applications in development economics," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 495-514.
    5. Liu, Jing-Yu & Lin, Shih-Mo & Xia, Yan & Fan, Ying & Wu, Jie, 2015. "A financial CGE model analysis: Oil price shocks and monetary policy responses in China," Economic Modelling, Elsevier, vol. 51(C), pages 534-543.
    6. James A. Giesecke & Peter B. Dixon & Maureen T. Rimmer, 2016. "The Economy-wide Impact of a Rise in Commercial Bank Capital Adequacy Ratios," Centre of Policy Studies/IMPACT Centre Working Papers g-261, Victoria University, Centre of Policy Studies/IMPACT Centre.
    7. Peter B. Dixon & James. A. Giesecke & Maureen T. Rimmer, 2015. "Superannuation within a financial CGE model of the Australian economy," Centre of Policy Studies/IMPACT Centre Working Papers g-253, Victoria University, Centre of Policy Studies/IMPACT Centre.
    8. Robinson, Sherman, 1991. "Macroeconomics, financial variables, and computable general equilibrium models," World Development, Elsevier, vol. 19(11), pages 1509-1525, November.
    9. Jason Nassios & James A. Giesecke & Peter B. Dixon & Maureen T. Rimmer, 2016. "A modelling framework for analysing the role of superannuation in Australia's financial system," Centre of Policy Studies/IMPACT Centre Working Papers g-266, Victoria University, Centre of Policy Studies/IMPACT Centre.
    10. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
    11. Stephen Hall & Timothy J Foxon & Ronan Bolton, 2017. "Investing in low-carbon transitions: energy finance as an adaptive market," Climate Policy, Taylor & Francis Journals, vol. 17(3), pages 280-298, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mukashov, A., 2023. "Parameter uncertainty in policy planning models: Using portfolio management methods to choose optimal policies under world market volatility," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 187-202.
    2. Jason Nassios & James A. Giesecke & Peter B. Dixon & Maureen T. Rimmer, 2016. "Superannuation and Macroeconomic Growth and Stability," Centre of Policy Studies/IMPACT Centre Working Papers g-267, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Rausch, Sebastian & Yonezawa, Hidemichi, 2023. "Green technology policies versus carbon pricing: An intergenerational perspective," European Economic Review, Elsevier, vol. 154(C).
    4. Haqiqi , Iman & Bahalou Horeh , Marziyeh, 2013. "Macroeconomic Impacts of Export Barriers in a Dynamic CGE Model," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 8(3), pages 117-150, July.
    5. Hui-Chih Chai & Wei-Hong Hong & John M. Reilly & Sergey Paltsev & Y.-H. Henry Chen, 2019. "Will Greenhouse Gases Mitigation Policies Abroad Affect The Domestic Economy? The Case Of Taiwan," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 1-26, November.
    6. Mario A. Fernandez & Adam J. Daigneault, 2018. "Money Does Grow On Trees: Impacts Of The Paris Agreement On The New Zealand Economy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-23, August.
    7. Nassios, Jason & Giesecke, James A. & Dixon, Peter B. & Rimmer, Maureen T., 2020. "What impact do differences in financial structure have on the macro effects of bank capital requirements in the United States and Australia?," Economic Modelling, Elsevier, vol. 87(C), pages 429-446.
    8. Landis, Florian & Fredriksson, Gustav & Rausch, Sebastian, 2021. "Between- and within-country distributional impacts from harmonizing carbon prices in the EU," Energy Economics, Elsevier, vol. 103(C).
    9. Landis, Florian & Rausch, Sebastian, 2017. "Deep transformations of the energy sector: A model of technology investment choice," Energy Economics, Elsevier, vol. 68(S1), pages 136-147.
    10. Sebastian Rausch & Hidemichi Yonezawa, 2018. "The Intergenerational Incidence Of Green Tax Reform," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-25, February.
    11. Fæhn, Taran & Yonezawa, Hidemichi, 2021. "Emission targets and coalition options for a small, ambitious country: An analysis of welfare costs and distributional impacts for Norway," Energy Economics, Elsevier, vol. 103(C).
    12. Jason Nassios & James A. Giesecke & Peter B. Dixon & Maureen T. Rimmer, 2016. "A modelling framework for analysing the role of superannuation in Australia's financial system," Centre of Policy Studies/IMPACT Centre Working Papers g-266, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. Li, Mengyu & Weng, Yuyan & Duan, Maosheng, 2019. "Emissions, energy and economic impacts of linking China’s national ETS with the EU ETS," Applied Energy, Elsevier, vol. 235(C), pages 1235-1244.
    14. Nassios, Jason & Giesecke, James & Dixon, Peter & Rimmer, Maureen, 2017. "Comparing the impacts of financial regulation in Australia and the United States using country-specific financial CGE models," Conference papers 332891, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Bruno Lanz & Thomas F. Rutherford, 2016. "GTAPINGAMS, version 9: Multiregional and small open economy models with alternative demand systems," IRENE Working Papers 16-08, IRENE Institute of Economic Research.
    16. Kat, Bora & Paltsev, Sergey & Yuan, Mei, 2018. "Turkish energy sector development and the Paris Agreement goals: A CGE model assessment," Energy Policy, Elsevier, vol. 122(C), pages 84-96.
    17. Jiang, Hong-Dian & Purohit, Pallav & Liang, Qiao-Mei & Dong, Kangyin & Liu, Li-Jing, 2022. "The cost-benefit comparisons of China's and India's NDCs based on carbon marginal abatement cost curves," Energy Economics, Elsevier, vol. 109(C).
    18. Rodríguez, M. & Teotónio, C. & Roebeling, P. & Fortes, P., 2023. "Targeting energy savings? Better on primary than final energy and less on intensity metrics," Energy Economics, Elsevier, vol. 125(C).
    19. Latorre, María C. & Olekseyuk, Zoryana & Yonezawa, Hidemichi & Robinson, Sherman, 2020. "Making sense of Brexit losses: An in-depth review of macroeconomic studies," Economic Modelling, Elsevier, vol. 89(C), pages 72-87.
    20. Yeo, Yeongjun & Lee, Jeong-Dong, 2020. "Revitalizing the race between technology and education: Investigating the growth strategy for the knowledge-based economy based on a CGE analysis," Technology in Society, Elsevier, vol. 62(C).

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332939. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.