Application of computable general equilibrium (CGE) to climate change mitigation policy: A systematic review
Authored by Kazeem Alasinrin Babatunde, Rawshan Ara Begum, Fathin Faizah Said
Date Published: 2017
DOI: 10.1016/j.rser.2017.04.064
Sponsors:
Arus Perdana
FRGS
Platforms:
No platforms listed
Model Documentation:
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Abstract
With the growing literature related to climate change mitigation
measures and policy interventions, a systematic review of the
application of computable general equilibrium (CGE) model is inevitable.
Therefore, this article aims to characterise the relevant studies,
define a comparative framework to identify the current state-of-the-art
and the gaps in applied general equilibrium models. Firstly, the
systematic review found a total of 301 research articles from Scopus and
Web of Science databases and finally analysed 154 articles based on
inclusion and exclusion criteria from 67 refereed journals. The review
analysis found that application of CGE model is very vital in addressing
climate change mitigation issues at the national, regional and global
levels. However, China attracted the most substantial research interests
followed by the USA, India and Australia, among others, which are in
line with their share of greenhouse gas emissions in the world. Most of
the research themes focus on the carbon tax, emission reduction target,
emission trading, renewable energy, energy efficiency, and carbon
capture and storage as primary drivers of low carbon economy.
Nevertheless, there is a trend of employing more static CGE model
compared to the dynamic CGE, although application of the latter has a
limitation of providing right inputs to the macroeconomic policy.
Finally, research directions and gaps envision other complementary
models such as dynamic stochastic general equilibrium (DSGE) and
agent-based model (ABM) for proper policy interventions.
Tags
ABM
DSGE
China
India
Model
Energy security
Emissions
Impacts
Sector
Economic-analysis
Systematic review
Computable general equilibrium
Climate change mitigation policy
Carbon taxes
Co2 mitigation