Green Growth Strategy: The Economywide Impact of Promoting Renewable Power Generation in the Philippines

IFPRI Discussion Paper 1802

41 Pages Posted: 20 Feb 2019

See all articles by Angga Pradesha

Angga Pradesha

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Sherman Robinson

International Food Policy Research Institute (IFPRI)

Md. Alam Hossain Mondal

Daffodil International University

Rowena Valmonte-Santos

International Food Policy Research Institute (IFPRI)

Mark W. Rosegrant

International Food Policy Research Institute (IFPRI)

Date Written: January 31, 2019

Abstract

This study assesses the economywide impact of promoting renewable power generation by targeting a 50 percent share of renewables in energy production by 2040. Using a novel approach by linking a bottom-up energy model with a top-down economywide model, we found that increasing the share of renewables in the power sector could slightly slow down the industrialization process and reduce economic growth. Implementing this policy, however, would allow the country to reduce carbon emissions by 65 million tons in 2040 and improve energy security. The health co-benefit is estimated to reach up to 324 billion Philippine pesos (PHP), which levels the welfare loss. Receiving foreign financial inflow as a compensation for reducing carbon emissions could drive the economy into Dutch disease, shifting more economic activities into the nontradable sector. Increasing total investment demand in the future as a policy response could potentially mitigate this effect and improve economic welfare by 155 billion PHP.

Keywords: Philippines, South East Asia, Asia, Renewable Energy, Energy Policies, Electricity, Energy Generation, Economic Growth, Energy Demand, Greenhouse Gas Emissions, Computable General Equilibrium (CGE) Model, Energy Models, Dutch Disease, Energy Security

Suggested Citation

Pradesha, Angga and Robinson, Sherman and Mondal, Md. Alam Hossain and Valmonte-Santos, Rowena and Rosegrant, Mark W., Green Growth Strategy: The Economywide Impact of Promoting Renewable Power Generation in the Philippines (January 31, 2019). IFPRI Discussion Paper 1802. Available at SSRN: https://ssrn.com/abstract=3330222

Angga Pradesha (Contact Author)

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Sherman Robinson

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Md. Alam Hossain Mondal

Daffodil International University ( email )

102 Shukrabad, Mirpur Road
Dhanmondi, Dhaka-1207
Bangladesh

Rowena Valmonte-Santos

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Mark W. Rosegrant

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

HOME PAGE: http://www.ifpri.org/srstaff/rosegram.htm

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