Modeling the Economic Effects of Climate Policy Instruments at the Macroeconomic level – a case study in Chile

As part of the Paris agreement, Chile has submitted its Long-term Climate Strategy (LTCS). The strategy provides a long-term vision for achieving carbon neutrality and climate resilience by 2050.

In this project, an E3 model (economy, energy, emissions) is built for Chile in cooperation with the Inter American Development Bank (IDB), the Chilean Ministry of Environment (MMA) and the 2050 Pathways Platform to support the formulation of evidence-based sectoral strategies. The MMA shall be enabled to analyze climate change impacts for the macroeconomy and across various economic sectors and to analyze direct, indirect and induced effects of adaptation actions, specifically those included in the LTCS.