Assessing the Impacts of COVID-19 on the Industrial Sectors and Economy of China.

Since December 2019, the COVID-19 epidemic has been spreading continuously in China and many countries in the world, causing widespread concern among the whole society. To cope with the epidemic disaster, most provinces and cities in China have adopted prevention and control measures such as home isolation, blocking transportation, and extending the Spring Festival holiday, which has caused a serious impact on China's output of various sectors, international trade, and labor employment, ultimately generating great losses to the Chinese economic system in 2020. But how big is the loss? How can we assess this for a country? At present, there are few analyses based on quantitative models to answer these important questions. In the following, we describe a quantitative-based approach of assessing the potential impact of the COVID-19 epidemic on the economic system and the sectors taking China as the base case. The proposed approach can provide timely data and quantitative tools to support the complex decision-making process that government agencies (and the private sector) need to manage to respond to this tragic epidemic and maintain stable economic development. Based on the available data, this article proposes a hypothetical scenario and then adopts the Computable General Equilibrium (CGE) model to calculate the comprehensive economic losses of the epidemic from the aspects of the direct shock on the output of seriously affected sectors, international trade, and labor force. The empirical results show that assuming a GDP growth rate of 4-8% in the absence of COVID-19, GDP growth in 2020 would be -8.77 to -12.77% after the COVID-19. Companies and activities associated with transportation and service sectors are among the most impacted, and companies and supply chains related to the manufacturing subsector lead the economic losses. Finally, according to the calculation results, the corresponding countermeasures and suggestions are put forward: disaster recovery for key sectors such as the labor force, transportation sector, and service sectors should be enhanced; disaster emergency rescue work in highly sensitive sectors should be carried out; in the long run, precise measures to strengthen the refined management of disaster risk with big data resources and means should be taken.

Economy-wide effects of a sustainable pathway in the pig sector: A case study in Aragon (Spain).

Computable General Equilibrium models are widely used in the literature to analyse the global effects of certain events with economic repercussions. The intensity of these events is usually justified, although somewhat vaguely. Based on the implementation of new technologies to certain production processes, we analyse the economic impacts of a replacement in the energy supply, from classical to renewable sources. In particular, this work focuses on the pig sector, due to its relatively high off-grid energy use, taking Aragon (Northern Spain) as a case study because of the significance of the sector in this region. A partial equilibrium approach to evaluate this replacement is first addressed. This partial analysis provides the intensity level of the impact of the change. On the basis of these data, the impact of the energy replacement is simulated using a Computable General Equilibrium model developed for the regional economy of Aragon. Findings show a slight increase in (pig) production and exports, and suggest the convenience of combining partial equilibrium analysis, which involves a mix of engineering and economic issues, to estimate the endogenous increase in efficiency, with general equilibrium models.

Global impacts of heat and water stress on food production and severe food insecurity.

In contrast to most integrated assessment models, with limited transparency on damage functions and recursive temporal dynamics, we use a unique large-dimensional computational global climate and trade model, GTAP-DynW, to directly project the possible intertemporal impacts of water and heat stress on global food supply and food security to 2050. The GTAP-DynW model uses GTAP production and trade data for 141 countries and regions, with varying water and heat stress baselines, and results are aggregated into 30 countries/regions and 30 commodity sectors. Blue water stress projections are drawn from WRI source material and a GTAP-Water database to incorporate dynamic changes in water resources and their availability in agricultural production and international trade, thus providing a more general measure for severe food insecurity from water and heat stress damages with global warming. Findings are presented for three representative concentration pathways: RCP4.5-SSP2, RCP8.5-SPP2, and RCP8.5-SSP3 (population growth only for SSPs) and project: (a) substantial declines, as measured by GCal, in global food production of some 6%, 10%, and 14% to 2050 and (b) the number of additional people with severe food insecurity by 2050, correspondingly, increases by 556 million, 935 million, and 1.36 billion compared to the 2020 model baseline.

POLICY INSIGHTS FROM THE EMF 32 STUDY ON U.S. CARBON TAX SCENARIOS.

The Stanford Energy Modeling Forum exercise 32 (EMF 32) used 11 different models to assess emissions, energy, and economic outcomes from a plausible range of economy-wide carbon price policies to reduce carbon dioxide (CO2) emissions in the United States. Here we discuss the most policy-relevant results of the study, mindful of the strengths and weaknesses of current models. Across all models, carbon prices lead to significant reductions in CO2 emissions and conventional pollutants, with the vast majority of the reductions occurring in the electricity sector. Importantly, emissions reductions do not significantly depend on the rebate or tax cut used to return revenues to the economy. Expected economic costs, as modeled by either GDP or welfare, are modest, but vary across models. These costs are offset by benefits from avoided climate damages and health benefits from reductions in conventional air pollution. Using revenues to reduce preexisting capital or labor taxes reduces costs in most models relative to lump-sum rebates, but the size of the cost reductions varies significantly. Devoting at least some revenue to household rebates can significantly reduce adverse impacts on low income households. Carbon prices at $25/ton or even lower levels cause significant shifts away from coal as an energy source with responses of other energy sources highly dependent upon technology cost assumptions. Beyond 2030, we conclude that model uncertainties are too large to make quantitative results useful for near-term policy design. We close by describing recommendations for policymakers on interacting with model results in the future.

OVERVIEW OF THE EMF 32 STUDY ON U.S. CARBON TAX SCENARIOS.

The Energy Modeling Forum (EMF) 32 study on carbon tax scenarios analyzed a set of illustrative policies in the United States that place an economy-wide tax on fossil-fuel-related carbon dioxide (CO2) emissions, a carbon tax for short. Eleven modeling teams ran these stylized scenarios, which vary by the initial carbon tax rate, the rate at which the tax escalates over time, and the use of the revenues. Modelers reported their results for the effects of the policies, relative to a reference scenario that does not include a carbon tax, on emissions, economic activity, and outcomes within the U.S. energy system. This paper explains the scenario design, presents an overview of the results, and compares results from the participating models. In particular, we compare various outcomes across the models, such as emissions, revenue, gross domestic product, sectoral impacts, and welfare.

INTRODUCTION TO THE EMF 32 STUDY ON U.S. CARBON TAX SCENARIOS.

This paper is an introduction to, "The EMF 32 Study on U.S. Carbon Tax Scenarios," part of the Stanford Energy Modeling Forum (EMF) Model Inter-comparison Project (MIP) number 32. Eleven modeling teams participated in this study examining the economic and environmental impacts of various carbon tax trajectories and differing uses of carbon tax revenues. This special issue of Climate Change Economics documents the results of this study with four crosscutting papers that summarize results across models, and ten papers from individual modeling teams.