Estimating The Distributive Impacts Of Climate Mitigation Policies In The Power Sector In Ghana

Abstract

Global efforts have been used to encourage developing countries to implement policies and programs to reduce their carbon footprint to minimize the adverse economic and social impacts of climate change. Almost all African countries (53 out of 54- except for Libya) have instituted a Nationally Determined Contribution (NDC) to reduce the impact of climate change through various mitigation and adaptation strategies. In such efforts, the benefits of mitigating climate change are emphasized, while the potential adverse effects of transition on the economy receive less commensurate attention. Particularly for many continents with heavy reliance on rainfed agriculture, high poverty levels and rising inequality, there is limited evidence and understanding of the growth and distributional effects of pursuing such mitigation and adaptation policies and programs. The impact of NDC policies on the broader macroeconomy and welfare impacts on the vulnerable popu lation in these countries have received less attention. A deeper under standing of the full scope of effects is critical to guide policymakers in designing and considering alternatives that may effectively achieve the dual goal of reducing greenhouse emissions and ensuring sustainable and equitable growth.