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

By Simon Black, Ian W.H. Parry, Victor Mylonas, Nate Vernon-Lin, Karlygash Zhunussova

June 23, 2023

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Simon Black, Ian W.H. Parry, Victor Mylonas, Nate Vernon-Lin, and Karlygash Zhunussova. The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change, (USA: International Monetary Fund, 2023) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Climate policy, Energy prices, Energy pricing, Environment, Expenditure, Fuel prices, Prices

Keywords: Carbon pricing, Climate mitigation, Climate mitigation policy, Climate policy, CPAT, CPAT application, CPAT model, CPAT structure, Energy prices, Energy pricing, Fiscal incidence, Fuel prices, Global, Health co-benefits, IMF-World Bank Climate Policy Assessment Tool, Instrument choice, Transport co-benefits, Welfare effects

Publication Details

Pages:

74
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2023/128
Stock No:

WPIEA2023128
ISBN:

9798400242342
ISSN:

1018-5941

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