Policy Advice for Climate Resilient Economic Development
As of: October 2021
In many countries, there is a lack of expertise in the model-based assessment of country-specific climate change impacts on economic development. The quantification of the economic effects can support knowledge-based policy decisions, which are necessary for climate-resilient economic policies, investments in future-proof sectors, and effective adaptation planning. Therefore, the project works with local stakeholders to implement methods and instruments for the calculation of the economic impacts of climate change impacts and their benefits for policy-making. Then, the project makes piloted methods and instruments available to governments and development organisations. The project promotes international exchange by networking with thematic platforms, providing studies, and making available the lessons learned during the project in a structured form to encourage the replication of the project activities.
State of implementation/results
- The CRED project, together with its partners in Georgia, Kazakhstan and Viet Nam, has begun developing macroeconomic models that model the economic consequences of climate change and the effectiveness of adaptation measures.
- The CRED project enabled the partners to develop long-term economic models (time horizon until 2050) in cooperation with economic experts from Germany and to integrate sector-specific damage functions or assessments of the impacts of climate change. In Georgia and Kazakhstan CRED is supported by the Gesellschaft für Wirtschaftliche Strukturforschung (GWS) with dynamic input-output models (e3.ge, e3.kz) and in Vietnam by the Leibniz Institute for Economic Research Halle (IWH) with a general dynamic equilibrium model (DGE-CRED).
- In the countries, 15-30 economists participated in the trainings, partly as model developers or model users.
- In 2021, the calculation of adaptation scenarios in selected sectors will be accompanied in the countries, results will be fed into the policy process, and communication material such as field reports/policy briefs and modeling reports will be produced.