An Integrated Modelling Approach for Assessing the Macroeconomic Costs and Benefits of Low Carbon Pathways

An Integrated Modelling Approach for Assessing the Macroeconomic Costs and Benefits of Low Carbon Pathways
Incorporating specific strategies for achieving defined carbon emission reduction goals in the economic development agenda is crucial for India, given its development imperatives and consequences of its choice to the world. Choice of specific strategies in this context will have to be guided by assessments of implications of policy choices to the economy at the aggregate level and whether it is inclusive or not. The assessment also needs to be weighed in terms of its impact in the short-term, medium term and long- term effects. Understanding this broader dimension of the implications would be of critical significance in the choice of low carbon pathways to minimize economic costs while achieving the goals to preserve life sustaining nature. The programme will assess low-carbon development pathways for India, with the twin pillars of (1) techno-economic assessment of cost-effective opportunities for energy transitions in key sectors, and (2) qualitative examination of socio-political and governance challenges of potential pathways and requisite policy interventions. This work program is designed to develop a methodology to provide an economy wide assessment of alternative policy choices to achieve low carbon pathways towards sustainable and inclusive economic development in India. The study scopes to Integrate the Social Accounting based CGE Model to be developed by NCAER with the MESSAGEix based Energy Systems Model, to be constructed by its collaborative partner in this study. In the process, the study identifies the linkages and mapping of MESSAGEix and CGE model.