Nicaragua’s Climate Mitigation Policy: Sectoral and Inter-Household Effects

Abstract

The objective of this paper is to develop a CGE model for a developing country that disaggregates households and studies the impact of Nationally Determined Contributions (NDC) commitments. The model disaggregates the representative household into 20 representative households, 10 rural and 10 urban households. For the household disaggregation we have used the information from the Living Standards Measurement Study (LSMS) 2014 for Nicaragua. The households disaggregation allows to study the impact of achieving the NDC commitments for the country; and determine which households are expected to win and which households. Since Mitigation, Adaptation and New Technologies Applied General Equilibrium (MANAGE) model is a dynamic model we also model the evolution of the households to these shocks

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