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Transitioning towards a low-carbon economy in Mexico: An application of the ThreeMe model

Abstract : This document offers an empirical application of the notion of energy transition to the Mexican economy and it takes the next step of simulating medium- and long-term impacts of proposed and future energy and fiscal policy on the environment and the Mexican economy. The starting point of the analysis is the ThreeME framework, a Multi-sectoral Macroeconomic Model based on Keynesian theory. It is designed to address the dynamics of global economic activity, energy system development and carbon emissions causing climate change. The ThreeME model is well- suited for policy assessment purposes in the context of developing economies as it informs the transitional effects of policy intervention. In particular, disequilibrium can arise in the form of involuntary unemployment, the inertia of technical systems and rigidity in labor and energy markets as a result of delayed market clearing in the goods markets and slow adjustment between prices and quantities over the simulation time path.
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Reports (Research report)
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https://hal-sciencespo.archives-ouvertes.fr/hal-03613222
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Submitted on : Friday, March 18, 2022 - 12:14:52 PM
Last modification on : Wednesday, October 26, 2022 - 8:14:25 AM
Long-term archiving on: : Sunday, June 19, 2022 - 6:46:54 PM

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Gissela Landa. Transitioning towards a low-carbon economy in Mexico: An application of the ThreeMe model. [Research Report] Agence française de développement. 2015, pp.66. ⟨hal-03613222⟩

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