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ESTEEM: Measuring macroeconomic risks in low-carbon transitions
The macroeconomic modeling tool ESTEEM (Exposure to Structural Transition in an Ecological-Economic Model) identifies the external, fiscal and socio-economic risks faced by developing countries in their transition towards low-carbon economies.
Objectives
- Understand the dynamics of the ecological transition within a multi-dimensional framework
- Analyze the macroeconomic vulnerabilities and identify the risks associated with the transition in order to enhance the public policy dialogue
- Help countries define a suitable transition by taking account of their particular economic, social and environmental circumstances
Am I eligible?
We have developed versions of ESTEEM for Armenia, Bolivia, Uzbekistan and Vietnam.
You are a State actor in one of these countries and you represent:
- A Ministry of Finance
- A Ministry of Development and/or Environment
- A Ministry of Energy
- A Central Bank
- A local development bank
ESTEEM has also been applied to the Carbon Border Adjustment Mechanism (CBAM) to identify the macroeconomic implications of its potential implementation for the European Union’s trade partners.
To find out about our solutions tailored to your needs
Benefits
- Informs decision-making for transitions towards low-carbon economies
- Sectoral assessment of transition risks
- Supports a just transition
The ESTEEM model makes it possible to identify the industries that may disappear due to this transition and model the economic and social impacts. The end of coal mining will not have the same consequences in South Africa as it will in Colombia, for example. ESTEEM provides a very detailed analysis.
- AFD Economist
Type of mechanism: Macroeconomic modeling tool
Budget: €150,000 – €350,000
Projects targeted: Economic modeling
Mode of operation: ESTEEM uses the various economic characteristics of a country to identify the macroeconomic and social risks it faces by engaging in a low-carbon transition
5 stages:
- Contact with the partner country
- Joint assessment
- Identification and consolidation of the data required for analysis
- Deployment of the analysis, processing of data and adjustment of priorities
- Sharing of results and use of the model
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