Modeling Low-Carbon Development Pathways for India

Sustaining rapid economic growth and satisfying unmet energy demand while limiting greenhouse gas emissions in line with global climate commitments is a significant challenge in India. Proposed policy solutions to these objectives should be evaluated according to their impacts on the energy system and the economy to identify potentially efficient policies.

We are developing an energy-economic model for India that provides a comprehensive foundation for analyzing energy technologies and policies. This novel model based on a general equilibrium approach simulates the Indian economy, with detailed inter-sectoral linkages, and facilitates an understanding of economy-wide impacts of policies. The model also allows for analysis of the tradeoffs among different technology choices in terms of their costs and efficiency in emissions reduction.

Currently, the core structure of the model is ready to simulate India’s NDCs and can provide information on relative costs of emissions reduction as well as electricity mix under different scenarios. Future work involves adding more details on technology representation, developing collaboration with policy making bodies in India, and enhancing the model to facilitate evaluation of policies under consideration.