SiSePuede

Description

SiSePuede is a bottom-up partial equilibrium model with sector detail. Rather than using an abatement cost curve, the model links emissions back to technical choices. Benefits associated with emissions reductions are systematically quantified. Using the model first involves translating emission reduction goals into concrete sector pathways, for which the development benefits also need to be quantified. Then, the costs and benefits of the transition are analyzed by translating the development benefits into economic terms, such as GDP, labor, or trade balances via rules of thumb and simple coefficients. The model can help manage uncertainty by running different development pathways under a wide range of future conditions.

Questions to Be Answered/Variables Considered

The model seeks to analyze the economic impact of different development pathways and thereby to help governments design emission reduction targets that enjoy broad support. By showing the changes needed in each sector and their development benefits, the model also helps MoFs make public investments and policy reforms to encourage private investment in net zero solutions. Variables include the impact on GDP, labor, and trade balances.

Use

MoFs can run the model in-house or collaborate with local universities to run it on their behalf. An application to Latin America and the Caribbean, for instance, found that reaching net zero emissions by 2050 could bring the region up to US $2.7 trillion in net benefits compared with a “traditional development” trajectory following historical development patterns.