Abstract
Typically, a computable general equilibrium (CGE) model is employed to develop, first and foremost, what could be called the “no-policy” or “benchmark” scenario, but is conventionally alluded to as the baseline or business-as-usual (BAU) scenario, or simply reference scenario. Subsequently, it is usually run to generate counterfactual policy scenarios, which are then compared with respect to the reference scenario to derive policy lessons. In accordance with this convention in CGE analysis, we have developed a reference scenario, without any market-based instrument for climate change mitigation, and two carbon tax scenarios in which producers are fiscally incentivised to switch to cleaner sources of energy.
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Reference
MoEF (2009), India’s Greenhouse Gas emission Inventory—A report of Five Modeling studies, Ministry of Environment and Forests, Government of India (www.moef.nic.in)
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© 2015 Springer India
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Pal, B., Ojha, V., Pohit, S., Roy, J. (2015). Reference and Policy Scenarios of CGE Model. In: GHG Emissions and Economic Growth. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1943-9_7
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DOI: https://doi.org/10.1007/978-81-322-1943-9_7
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Publisher Name: Springer, New Delhi
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