multipliers, and making alternative assumptions about the ambition of the SDS targets. The Summary sheet of the template generates charts that summarize the assumptions and job-creation results once the user selects the country and the scenario.
In the baseline, Brazil has a renewable-based generationshare of 21.5 percent in 2020, and a high share of low carbon generation (62.5 percent), due its vast conventional hydropower capacity. Thus relative to the BAU, the SDS scenario achieves a greener profile by reducing the share of fossil-fuel based generation by more
Compelled to deal with such daunting tasks, the authorities have followed, among others, a few simple but demanding guidelines: dollarization, to pre-empt monetary instability; tight fiscal policy with a social perspective, to avoid the consequences of excessive budgetary stimulus and mounting indebtedness, while trying to bias public expenditures towards the poorer; prudent arrangements for future oil revenues, aiming to ensure both an adequate generation-sharing of such revenues and their absorption by the economy in a non-unbalancing way; finally, the progressive
, to consolidate the decline in inflation observed in recent months, and to reduce widespread poverty through increased investment.
Directors stressed that the increase in risks to the outlook requires a proactive fiscal response. They welcomed the authorities’ fiscal strategy, which includes cuts in lower-priority capital expenditure while preserving social spending. To reduce dependency on volatile export-based revenue and ensure inter-generationalsharing of hydrocarbon wealth, Directors saw a need to target a reduction in the non-hydrocarbons fiscal deficit
have been successful: the economy has diversified both horizontally and vertically and the diversity and sophistication of manufacturing and exports has increased. Malaysia’s diversification is helping to shield the economy from the impact of the decline in oil prices at the end of 2014.
The state-owned oil company PETRONAS has played an important role in managing resource wealth. Although not a sovereign wealth fund, PETRONAS has played a similar role by facilitating cross generationalsharing of resource wealth, buffering the federal budget from shocks and
Spreadsheet models are used to assess the environmental, fiscal, economic, and incidence effects of a wide range of options for reducing fossil fuel use in India. Among the most effective options is ramping up the existing coal tax. Annually increasing the tax by INR 150 ($2.25) per ton of coal from 2017 to 2030 avoids over 270,000 air pollution deaths, raises revenue of 1 percent of GDP in 2030, reduces CO2 emissions 12 percent, and generates net economic benefits of approximately 1 percent of GDP. The policy is mildly progressive and (at least initially) imposes a relatively modest cost burden on industries.
-percent increase in generation cost for fuel i , for a given amount of electricity. Generation cost elasticities are larger than corresponding fuel price elasticities as an increase in all (fuel and non-fuel) generation costs has a bigger impact than an increase in fuel costs alone.
From (A3) fuel i ’s generationshare decreases in own generation cost and increases in the generation cost of other fuels, where the increase in fuel i ’s generationshare is the reduced share for fuel j≠i times the (initial) share of i in generation from all fuel alternatives to j
elder generationsshare the burden of pension reform, for example through greater cuts in benefits or higher taxation for current retirees. 8
D. Policy Issues in Selecting Reform Options
17. The optimal design of a pension system to a large extent depends on social preferences . The basic role of a public pay-as-you-go pension system is to facilitate intergenerational transfers. The size of the transfers, the extent of redistribution involved, and the weight placed on efficiency versus equity considerations are a matter of public choice. Some countries have
, and both the current and future generations stand to benefit from a higher capital stock, then it can be argued that all generationsshare in paying off the debt. In that case, it would be justified to reduce the debt burden through the use of oil revenues. A moral argument may suggest a different approach if the debt was accumulated primarily to pay for consumption of an impatient present generation, of if the debt financed largely unproductive and wasteful investment spending. In that case, a more just outcome might be to save more oil revenues for future