A major contributor to this article appears to have a close connection with its subject.(January 2024) |
Established | 1992 |
---|---|
Founder | Thomas Hertel [1] |
Parent institution | Purdue University |
Managing Director | Dominique van der Mennsbrugghe [2] |
Address | Center for Global Trade Analysis Department of Agricultural Economics Purdue University 403 West State Street West Lafayette, Indiana 47907-2056, United States |
Language | English |
Mission | To provide leadership in economic policy analysis by fostering collaboration to achieve better data and research outcomes. |
Website | gtap.agecon.purdue.edu |
GTAP (the Global Trade Analysis Project) is a global network of researchers [3] (mostly from universities, international organizations, and economic and climate/resource ministries of governments) who conduct quantitative analysis of international economic policy issues, including trade policy, [4] climate policy, [5] and globalization linkages to inequality and employment. [6] The consortium produces a consistent global economic database (the GTAP Data Base) which is widely used in the research community to study prospective international economic policy around these issues. [7]
While the consortium includes a large number of international organizations, [3] GTAP itself is coordinated by the Center for Global Trade Analysis, located at Purdue University.
Founded by Thomas Hertel [1] in 1992, the project grew out of the Australian IMPACT and SALTER modelling projects, and was heavily influenced by Alan Powell. [8] [7] It is currently directed by Dominique van der Mensbrugghe. [2] A central element of GTAP is a large-scale database that is updated periodically by the consortium members, under coordination of the Center for Global Trade Analysis. [9] The data are important, core structural inputs to a broad range of global economic policy models and related applications: [4] studies of climate change and resource use (including studies feeding into the IPCC process); regional economic integration; and the effects of globalization. [10] [11] [5] [12] For this reason, the consortium membership (those contributing to the database) includes prominent global governance and policy research institutions like the World Bank, European Commission, World Trade Organization, International Monetary Fund, the Massachusetts Institute of Technology Joint Program on the Science and Policy of Global Change, United Nations Conference on Trade and Development, and the Organisation for Economic Co-operation and Development. [3] There are currently three "Consortium Members At Large" – Joseph Francois, Mark Horridge, [13] and Brian O'Neill, [14] who represent the broader scientific community. [3] The primary database is essentially a multi-year form of a multi-region input output (MRIO) database supplemented by national macroeconomic data, though extensive satellite datasets cover other measures that are linked to the economic flows in the core database, including trade policies, greenhouse gas emissions, energy use, migration flows, and land use patterns. [15] While from its inception the database was closely tied to the computable general equilibrium (CGE) research community, in recent years the database has also been at the center of greenhouse gas emissions accounting exercises, [16] [17] [18] [19] and related assessments of resource use. [20] [21]
In addition to the multinational effort needed to update and expand the project database, the Center for Global Trade Analysis also offers courses on practical, model-based economic policy analysis. This includes courses on basic computational modelling and dynamic general equilibrium modelling. [22] The standard GTAP Model, which serves as a maquete or framework model linking the database to a basic general equilibrium system, was developed with the GEMPACK suite of software [23] but is also implemented using the GAMS suite of software. [24] The center also organizes a large-scale annual conference on global economic policy modelling. The center also provides awards and recognition to members of the research community, including the Alan A. Powell Award and the GTAP Research Fellow awards. [25] [26]
Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). One prominent example is carbon emission trading for CO2 and other greenhouse gases which is a tool for climate change mitigation. Other schemes include sulfur dioxide and other pollutants.
A carbon tax is a tax levied on the carbon emissions from producing goods and services. Carbon taxes are intended to make visible the hidden social costs of carbon emissions. They are designed to reduce greenhouse gas emissions by essentially increasing the price of fossil fuels. This both decreases demand for goods and services that produce high emissions and incentivizes making them less carbon-intensive. When a fossil fuel such as coal, petroleum, or natural gas is burned, most or all of its carbon is converted to CO2. Greenhouse gas emissions cause climate change. This negative externality can be reduced by taxing carbon content at any point in the product cycle.
The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the global energy sector. The 31 member countries and 13 association countries of the IEA represent 75% of global energy demand.
Climate sensitivity is a key measure in climate science and describes how much Earth's surface will warm for a doubling in the atmospheric carbon dioxide (CO2) concentration. Its formal definition is: "The change in the surface temperature in response to a change in the atmospheric carbon dioxide (CO2) concentration or other radiative forcing." This concept helps scientists understand the extent and magnitude of the effects of climate change.
The Special Report on Emissions Scenarios (SRES) is a report by the Intergovernmental Panel on Climate Change (IPCC) that was published in 2000. The greenhouse gas emissions scenarios described in the Report have been used to make projections of possible future climate change. The SRES scenarios, as they are often called, were used in the IPCC Third Assessment Report (TAR), published in 2001, and in the IPCC Fourth Assessment Report (AR4), published in 2007. The SRES scenarios were designed to improve upon some aspects of the IS92 scenarios, which had been used in the earlier IPCC Second Assessment Report of 1995. The SRES scenarios are "baseline" scenarios, which means that they do not take into account any current or future measures to limit greenhouse gas (GHG) emissions.
Climate change mitigation (or decarbonisation) is action to limit the greenhouse gases in the atmosphere that cause climate change. Climate change mitigation actions include conserving energy and replacing fossil fuels with clean energy sources. Secondary mitigation strategies include changes to land use and removing carbon dioxide (CO2) from the atmosphere. Current climate change mitigation policies are insufficient as they would still result in global warming of about 2.7 °C by 2100, significantly above the 2015 Paris Agreement's goal of limiting global warming to below 2 °C.
Economic analysis of climate change is about using economic tools and models to calculate the magnitude and distribution of damages caused by climate change. It can also give guidance for the best policies for mitigation and adaptation to climate change from an economic perspective. There are many economic models and frameworks. For example, in a cost–benefit analysis, the trade offs between climate change impacts, adaptation, and mitigation are made explicit. For this kind of analysis, integrated assessment models (IAMs) are useful. Those models link main features of society and economy with the biosphere and atmosphere into one modelling framework. The total economic impacts from climate change are difficult to estimate. In general, they increase the more the global surface temperature increases.
Computable general equilibrium (CGE) models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE models. A CGE model consists of equations describing model variables and a database consistent with these model equations. The equations tend to be neoclassical in spirit, often assuming cost-minimizing behaviour by producers, average-cost pricing, and household demands based on optimizing behaviour.
Greenhouse gas inventories are emission inventories of greenhouse gas emissions that are developed for a variety of reasons. Scientists use inventories of natural and anthropogenic (human-caused) emissions as tools when developing atmospheric models. Policy makers use inventories to develop strategies and policies for emissions reductions and to track the progress of those policies.
The Stern Review on the Economics of Climate Change is a 700-page report released for the Government of the United Kingdom on 30 October 2006 by economist Nicholas Stern, chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics (LSE) and also chair of the Centre for Climate Change Economics and Policy (CCCEP) at Leeds University and LSE. The report discusses the effect of global warming on the world economy. Although not the first economic report on climate change, it is significant as the largest and most widely known and discussed report of its kind.
The social cost of carbon (SCC) is the marginal cost of the impacts caused by emitting one extra tonne of carbon emissions at any point in time. The purpose of putting a price on a tonne of emitted CO2 is to aid policymakers or other legislators in evaluating whether a policy designed to curb climate change is justified. The social cost of carbon is a calculation focused on taking corrective measures on climate change which can be deemed a form of market failure. The only governments which use the SCC are in North America. The Intergovernmental Panel on Climate Change suggested that a carbon price of $100 per tonne of CO2 could reduce global GHG emissions by at least half the 2019 level by 2030.
Carbon pricing is a method for governments to mitigate climate change, in which a monetary cost is applied to greenhouse gas emissions in order to encourage polluters to reduce fossil fuel combustion, the main driver of climate change. A carbon price usually takes the form of a carbon tax, or an emissions trading scheme (ETS) that requires firms to purchase allowances to emit. The method is widely agreed to be an efficient policy for reducing greenhouse gas emissions. Carbon pricing seeks to address the economic problem that emissions of CO2 and other greenhouse gases are a negative externality – a detrimental product that is not charged for by any market.
Integrated assessment modelling (IAM) or integrated modelling (IM) is a term used for a type of scientific modelling that tries to link main features of society and economy with the biosphere and atmosphere into one modelling framework. The goal of integrated assessment modelling is to accommodate informed policy-making, usually in the context of climate change though also in other areas of human and social development. While the detail and extent of integrated disciplines varies strongly per model, all climatic integrated assessment modelling includes economic processes as well as processes producing greenhouse gases. Other integrated assessment models also integrate other aspects of human development such as education, health, infrastructure, and governance.
Carbon emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emissions trading scheme designed for carbon dioxide (CO2) and other greenhouse gases (GHGs). A form of carbon pricing, its purpose is to limit climate change by creating a market with limited allowances for emissions. Carbon emissions trading is a common method that countries use to attempt to meet their pledges under the Paris Agreement, with schemes operational in China, the European Union, and other countries.
The economics of climate change mitigation is a contentious part of climate change mitigation – action aimed to limit the dangerous socio-economic and environmental consequences of climate change.
A climate change scenario is a hypothetical future based on a "set of key driving forces". Scenarios explore the long-term effectiveness of mitigation and adaptation. Scenarios help to understand what the future may hold. They can show which decisions will have the most meaningful effects on mitigation and adaptation.
A carbon fee and dividend or climate income is a system to reduce greenhouse gas emissions and address climate change. The system imposes a carbon tax on the sale of fossil fuels, and then distributes the revenue of this tax over the entire population as a monthly income or regular payment.
Energy modeling or energy system modeling is the process of building computer models of energy systems in order to analyze them. Such models often employ scenario analysis to investigate different assumptions about the technical and economic conditions at play. Outputs may include the system feasibility, greenhouse gas emissions, cumulative financial costs, natural resource use, and energy efficiency of the system under investigation. A wide range of techniques are employed, ranging from broadly economic to broadly engineering. Mathematical optimization is often used to determine the least-cost in some sense. Models can be international, regional, national, municipal, or stand-alone in scope. Governments maintain national energy models for energy policy development.
Joseph Francois is a professor of international economics at the University of Bern, where he has taught since 2013. Since 2015, he is also the managing director of the World Trade Institute. He is co-director of the European Trade Study Group, which he co-founded in 1999. He is a research fellow of the Centre for Economic Policy Research (CEPR) and an at-large board member of the Global Trade Analysis Project (GTAP).
Green recovery packages are proposed environmental, regulatory, and fiscal reforms to rebuild prosperity in the wake of an economic crisis, such as the COVID-19 pandemic or the Global Financial Crisis (GFC). They pertain to fiscal measures that intend to recover economic growth while also positively benefitting the environment, including measures for renewable energy, efficient energy use, nature-based solutions, sustainable transport, green innovation and green jobs, amongst others.