Green Growth Opportunities for the Decarbonization Goal for Chile : Report on the Macroeconomic Effects of Implementing Climate Change Mitigation Policies in Chile 2020
The study presents the results of model simulations showing the macroeconomic effects of the implementation of key climate change mitigation policies in Chile, aimed to reduce CO2eq emissions in accordance with Chilean latest NDC and a target of ze...
| Main Authors: | , , , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/968161596832092399/Green-Growth-Opportunities-for-the-Decarbonization-Goal-for-Chile-Report-on-the-Macroeconomic-Effects-of-Implementing-Climate-Change-Mitigation-Policies-in-Chile-2020 http://hdl.handle.net/10986/34575 |
| Summary: | The study presents the results of model
simulations showing the macroeconomic effects of the
implementation of key climate change mitigation policies in
Chile, aimed to reduce CO2eq emissions in accordance with
Chilean latest NDC and a target of zero net CO2eq emissions
by 2050. By using a multi-sector macroeconomic general
equilibrium model, the study shows that the implementation
of the proposed policy package could have an overall
positive impact on the economy both in the short and long
run, as measured by the effect on economic indicators such
as GDP, and ensures decoupling of growth from fossil fuel
use. Per the analysis, the expected level of GDP by 2050
could increase up to 4,4 percent when compared to the
baseline scenario, which corresponds to a higher rate of
growth of 0.13 p.p. Main contribution to GDP is expected
from increased private consumption and investment, with an
estimated 2.4 and 1.7 percent respectively. Since positive
economic and financial implications could arise from the
implementation of the proposed mitigation package, the
unsolicited participation of the private sector could be
expected and enhanced. Remaining questions and discussions
from the study relate to limitations for the uptake of
mitigation measures sooner than long term scenarios. The
study evaluated the macroeconomic impact of implementing a
mitigation package aligned with the achievement of the
recent updated Chilean NDC and committed zero net CO2eq
emissions by 2050. |
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