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Macroeconomic Effects of a Low-Carbon Electricity Transition in Kenya and Ghana: An Exploratory Dynamic General Equilibrium Analysis

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  • Willenbockel, Dirk

Abstract

The present study applies purpose-built dynamic computable general equilibrium models for Ghana and Kenya with a disaggregated country-specific representation of the power sector to simulate the prospective medium-run growth and distributional implications associated with a shift towards a higher share of renewables in the power mix up to 2025. In both countries the share of fossil-fuel-based thermal electricity generation in the power mix will increase sharply over the next decade and beyond according to current national energy sector development plans. The overarching general message suggested by the simulation results presented here is that in both countries it appears feasible to reduce the carbon content of electricity generation significantly without adverse consequences for economic growth and without noteworthy distributional effects.

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  • Willenbockel, Dirk, 2017. "Macroeconomic Effects of a Low-Carbon Electricity Transition in Kenya and Ghana: An Exploratory Dynamic General Equilibrium Analysis," MPRA Paper 78070, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78070
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    Cited by:

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    2. Cicowiez, Martin & Akinyemi, Opeyemi & Sesan, Temilade & Adu, Omobola & Sokeye, Babajide, 2022. "Gender-differentiated impacts of a Rural Electrification Policy in Nigeria," Energy Policy, Elsevier, vol. 162(C).
    3. Shahriyar Nasirov & Raúl O’Ryan & Héctor Osorio, 2020. "Decarbonization Tradeoffs: A Dynamic General Equilibrium Modeling Analysis for the Chilean Power Sector," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    4. Pingkuo, Liu & Huan, Peng & Zhiwei, Wang, 2020. "Orderly-synergistic development of power generation industry: A China’s case study based on evolutionary game model," Energy, Elsevier, vol. 211(C).
    5. Li, Kai & Tan, Xiujie & Yan, Yaxue & Jiang, Dalin & Qi, Shaozhou, 2022. "Directing energy transition toward decarbonization: The China story," Energy, Elsevier, vol. 261(PA).

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    More about this item

    Keywords

    Green growth; Low carbon growth; Sub-Saharan Africa; CGE analysis; computable general equilibrium;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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