Energy transition and economic growth in Colombia: A dynamic cge Model with Renewable Energies

Cristian Camilo Segura-García, Jesús Alonso Botero-García and Álvaro Arturo Hurtado-Rendón

MPRA Paper from University Library of Munich, Germany

Abstract: Climate change has gained significant relevance in recent years, encouraging many countries to implement decarbonization policies aimed at reducing carbon dioxide (CO2) emissions. While much attention has been paid to the design of these policies, there is a growing interest in analyzing their macroeconomic implications. This study evaluates the impact of the energy transition on economic growth in Colombia using a recursive dynamic computable general equilibrium (CGE) model. The model is calibrated for the year 2022 and simulates the Colombian energy economy over a ten-year horizon. Results indicate that an ambitious and sustained policy promoting non-conventional renewable energy could increase GDP growth by up to 0.5 percentage points compared to a business-as-usual (BAU) scenario. Additionally, climate shocks such as El Ni˜no may negatively affect economic performance; however, early investment in renewable energy technologies can partially offset these adverse effects.

Keywords: Computable General Equilibrium (CGE); Renewable Energy; Energy Transition; Economic Growth; Colombia; Policy Simulation (search for similar items in EconPapers)
JEL-codes: D58 O44 Q43 Q54 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-ene and nep-env
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