Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237484 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01200
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper evaluates the economic and environmental impacts of implementing Costa Ricas Decarbonization Plan, focusing specifically on the Agriculture, Forestry and Other Land Uses (AFOLU) sectors. To do so, we apply the Integrated Economic-Environmental Modeling (IEEM) framework for Costa Rica, linked with high resolution spatial land use land cover and ecosystem services modeling (IEEMESM). This is the first economy-wide analysis of Costa Ricas Decarbonization Plan that integrates both economic and ecosystem services impacts. Such an integrated approach is critical for understanding cross-sectoral implications of decarbonization despite the sector-specific focus of AFOLU, while considering the impacts on future ecosystem services flows and wealth. Our results indicate that the positive cumulative wealth impacts of the full decarbonization of Costa Ricas AFOLU sectors are on the order of US$8,747 million by 2050 and generally enhances the future flow of ecosystem services. Decarbonization of AFOLU is pro-poor, lifting 4,530 out of poverty by 2050. From a public investment perspective, decarbonization generates economic returns of US$1,114 million when natural capital and environmental quality are considered. The IEEMESM Platform developed in this paper provides a strong foundation for future analysis and refinement of proposed decarbonization strategies for the country, while weighing the relative costs and benefits of the economic, environmental and social dimensions in an integrated way.
Subjects: 
Integrated Economic-Environmental Modeling (IEEM) Platform
dynamic computable general equilibrium (CGE) model
ecosystem services modeling
agriculture
climate change
decarbonization
JEL: 
C68
Q5
O13
Q54
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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