Assessing Low Carbon and Resilient Growth in Indonesia: An application of the ThreeME model

Frédéric Reynès () and Paul Malliet

Working Papers from HAL

Abstract: This report o ers an empirical applica on of the no on of energy transi on to the Indonesian economy by simula ng the medium- and long-term impacts of proposed investment plan in power genera on capaci es on the Indonesian economy. The star ng point of the analysis comes from ThreeME framework, a Mul -sectoral Macroeconomic Model based on Keynesian theory. It is designed to address dynamics of global economic ac vity, energy system development and carbon emissions causing climate change. The ThreeME model is well suited for policy assessment purposes in the context of developing economies as it informs the transi onal e ects of policy interven on. In par cular, disequilibrium can arise in the form of involuntary unemployment, iner a of technical systems and rigidity of labor and energy markets, as a result of delayed market- clearing in the goods markets and slow adjustment between prices and quan es over the simula on me path. Calibrated using sectorial and aggregated na onal accounts data, an Indonesian version of the ThreeME has been developed and accounts for 37 commodi es -including 4 energy sources- and 44 sectors, with an explicit dis nc on between 11 energy sectors and 4 transport sectors. Electricity produc on is disaggregated into 8 technologies: hydro, geothermal, wind, solar, nuclear, coal-based, oil-based and gas- based. A disaggrega on between 5 regions is also made. The ThreeME-Indonesia model is used to gauge the economic and environmental e ects of energy and scal policy measures in Indonesia at the na onal and regional levels. Di erent policy scenarios are assessed, each re ec ng the impact of investments in electricity produc on capaci es. This document is the result of an 18 months' research collabora on involving the Ministry of Na onal Development Planning (BAPPENAS), the French Agency for Development (AFD), the French Economic Observatory (OFCE), the Netherlands Organiza on for Applied Scien c Research (TNO) and the Center for Economics and Development Studies from the Padjadjaran University (CEDS).

Keywords: [No; keyword; available] (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Published in [Research Report] unknown, CNRS, UPX. 2017

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01708487

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().