The World Bank’s Country Climate and Development Reports (CCDRs), of which around 60 had been released as of September 2024, include an evaluation of the macroeconomic impacts of climate change and of climate policies, supported by a suite of models.
Beyond the standard analytical work of Ministries of Finance, these models can be used to analyze economy-wide impacts of decarbonization policies, estimate macroeconomic damages from climate change, and better understand the trade-offs between climate policy and other economic priorities.
- The models can be used as standalones, although in virtually all CCDRs they have been used in conjunction with more specialized models to maximize the granularity and country-specificity of the analysis.
- Biophysical models, energy and transportation models, and microsimulation models are regularly used to capture the sectoral and distributional impacts of climate change and climate policy. Specific details about planned policies (e.g., investment needs for adaptation plans, or the details of power-sector development plans) are usually supplied to the macroeconomic model from external sources rather than derived by the model itself.
- In this context, the macroeconomic models are mainly focused on whole-economy effects and how firm and household reactions shape the final products.
- In addition to MFMod-CC, MANAGE, ENVISAGE, CPAT, and MINDSET (each described in more detail below), other models used to analyze climate-related issues for CCDRs include SHOCK WAVES, UNBREAKABLE, and OMEGA.
The World Bank has active programs for building country-specific versions of the models for client countries as well as training on how to use, maintain, and revise the models.
Keywords
combining approachesmodelsphysical risktechnical assistancetransition
