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A dynamic CGE modelling approach for analyzing trade-offs in climate change policy options: the case of Green Climate Fund

Keywords: Climate Change Policies, Green Growth, Developing Countries, Dynamic CGE Energy Model, Green Climate Fund

Author(s): Alessandro Antimiani, Valeria Costantini, Anil Markandya, Chiara Martini, Alessandro Palma, and Maria Cristina Tommasino

Date: 2014-09-08

Issue: 2014-05

  Download this working paper (1 MB.)



We investigate the trade-offs between economic growth and low carbon targets for developing and developed countries in the period up to 2035. Policy options are evaluated with an original version of the dynamic CGE model GDynE. Abatement costs appear to be strongly detrimental to economic growth for developing countries. We investigate options for reducing these costs that are consistent with a green growth strategy. We show that Green Climate Fund financed through a levy on carbon taxation can benefit all parties, and larger benefits are associated with investment of the Green Climate Fund to foster energy efficiency in developing countries.

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