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Clean energy transition and options for hedging fiscal policy against climate change damaging externalities

Working paper Sustainable Growth, Energy and Climate change

This working paper uses an Environmental DSGE model to assess the macro-fiscal effects of Uganda’s clean energy transition, highlighting the role of emission tax revenue allocation. While subsidising clean capital achieves the greatest emissions cuts, investing in climate adaptation yields stronger economic and fiscal outcomes, revealing a key trade-off in policy design.

Project

Authors

Albert Musisi

Commissioner, Ministry of Finance, Planning and Economic Development, Uganda

Wilson Asiimwe

Senior Economic Modeler, Ministry of Finance, Planning and Economic Development, Uganda

Edward Bbaale

Associate Professor, Economics, Makerere University
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Themes
Sustainable Growth Energy Climate change
Countries
Uganda