The Imf-World Bank Climate Policy Assessment Tool (Cpat): A Model to Help Countries Mitigate Climate Change

72 Pages Posted: 29 Jun 2023 Last revised: 17 Jul 2024

See all articles by Simon Black

Simon Black

International Monetary Fund (IMF)

Ian Parry

International Monetary Fund (IMF)

Victor Mylonas

International Monetary Fund (IMF); World Bank

Nate Vernon

International Monetary Fund (IMF)

Karlygash Zhunussova

International Monetary Fund (IMF)

Abstract

To stabilize the climate, global greenhouse gas emissions must be cut by 25 to 50 percent by 2030 compared to 2019. Such an unprecedented rate of decarbonization necessitates climate mitigation policies across countries, notably carbon pricing, fossil fuel subsidy reform, renewable subsidies, feebates, emission rate regulations, and public investments. To design and implement effective, efficient, and equitable policies, governments need tools to assess economic, environmental, fiscal, and social impacts. To support this effort, the IMF and World Bank are making their joint Climate Policy Assessment Tool (CPAT) available to governments. CPAT is a transparent, flexible, and user-friendly model covering over 200 countries. It allows for the rapid quantification of impacts of climate mitigation policies, including on energy demand, prices, emissions, revenues, welfare, GDP, households and industries, local air pollution and health, and many other metrics. This paper describes the CPAT model, its data sources, key assumptions, and caveats.

Keywords: CPAT, climate mitigation, carbon pricing, instrument choice, fiscal incidence, health co-benefits, transport co-benefits, welfare effects, IMF-World Bank Climate Policy Assessment Tool, climate mitigation policy, CPAT model, CPAT structure, CPAT application, Climate policy, Energy pricing, Energy prices, Fuel prices, Global

JEL Classification: Q31, Q35, Q38, Q48, H23, Q41, Q58, Q50, Q54

Suggested Citation

Black, Simon and Parry, Ian and Mylonas, Victor and Vernon, Nate and Zhunussova, Karlygash, The Imf-World Bank Climate Policy Assessment Tool (Cpat): A Model to Help Countries Mitigate Climate Change. IMF Working Paper No. 2023/128, Available at SSRN: https://ssrn.com/abstract=4493908 or http://dx.doi.org/10.5089/9798400245831.001

Simon Black (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ian Parry

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Victor Mylonas

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Nate Vernon

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Karlygash Zhunussova

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
162
Abstract Views
650
Rank
395,766
PlumX Metrics