A Review of Climate Economic Models in Malaysia

Thirupathi Rao and Siti Indati Mustapa
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Thirupathi Rao: College of Graduate Studies, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang 43000, Selangor, Malaysia
Siti Indati Mustapa: Institute of Energy Policy & Research (IEPRe), Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang 43000, Selangor, Malaysia

Sustainability, 2020, vol. 13, issue 1, 1-20

Abstract: This paper presents a review of literature on the development of climate economy models in Malaysia from 1988 to 2020. The type of climate economic models used in Malaysia and their attributes were analyzed. The key attributes reviewed include functions, capability, the various approaches, types of Greenhouse gas (GHG) emissions, and various sectors included in the modelling. The review analysis revealed that climate economic modelling in Malaysia can be categorized into two groups namely Input-Output (I-O) table and Social Accounting Matrix (SAM) models as well as the Integrated Assessment Models (IAM). Both groups of climate economic models complement each other in functional capability to do top-down or bottom-up as well as short-term and long-term analysis. The key contribution of this review is in discovering three key gap clusters that exist in climate economic modelling in Malaysia. These gaps include the coverage on types of GHGs, disclosing the GHG sector’s coverage in the modelling, and the discovering of the exclusion of climate damage functions as well as the unavailability of customized functions to suit Malaysia’s climate and geography. These three key gaps need to be urgently addressed for effective policy interventions in Malaysia and to meet the global goals of the Paris Agreement.

Keywords: carbon price; climate economic modelling; Malaysia; climate change; greenhouse gas emissions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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