All of Scioteca
Communities & Collections By Issue Date Authors Titles Subjects Country / Region
Profiles
Our Authors
My Account
Login

Public-infraestructure and energy-subsidy policies, energy access by the poor and long-term macroeconomic performance

This paper presents the main set-up and long-run results from a simple deterministic version of a dynamic stochastic general equilibrium model of a small open economy in Kawamura (2017). The model assumes two types of households, one poor and the other non-poor. There are two types of energy used as both GDP input and consumption goods, one using a fossil-based resource (with a given international price) and another that uses public capital and that represents a non-standard, "clean" (i.e., non-fossil based) energy source. The paper reports the results from two types of policy makers. The .rst type corresponds to a benevolent and perfectly-committed government that sets complete plans of taxes, subsidies and public investment policies, including public infrastructure. The second type of policy maker is a politician that wins elections occurring in every period. Such politician implements policies promised at the electoral stage. This second policy-making process assumes that the politician can commit to policies only for the period in which she wins elections. The paper shows that a necessary condition for obtaining long-run growth in public capital, private capital, GDP and clean energy is that the international price of the resource increases steadily through time. Thus, both types of policy makers react to such increase by also steadily increasing the public investment.

Abstract

Description

Subject

Economía | Energía | Infraestructura | Investigación socioeconómica | Pobreza | Políticas públicas

País / Región

URI

https://scioteca.caf.com/handle/123456789/1050

Date

2017-04-24

Cite from this publication

Collections

6.1 Documentos de trabajo en investigación socioeconómica

Endorsement

Review

Supplemented By

Referenced By

Creative Commons license

CC-BY-NC
Except where otherwised noted, this item's license is described as CC-BY-NC
Thumbnail Image

Files

Kawamura (2017).pdf (476.88 KB)

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

CAF

Related Items

Thumbnail Image
Misallocated Talent: Teen Pregnancy, Education and Job Sorting in Colombia

Policy makers and international organizations often argue that teenage pregnancy affects girls’ life trajectories by, for example, limiting their employment opportunities. These concerns are amplified...

Thumbnail Image
Estimating the nature of political corruption: evidence from a policy experiment in Brazil

This paper proposes a test to estimate the nature of political corruption in developing countries: embezzlement by self enriching politicians versus corruption that originates as...

Thumbnail Image
Criminal Dominance and Campaign Concentration

There are many journalistic and anecdotal accounts about the prevalence of electoral corrals in Brazil, geographic areas where brokers, politicians, or community leaders influence residents...

Thumbnail Image
Spillovers of health education at school on parents´ physical activity

To prevent modern health conditions like obesity, cancer, cardiovascular illness, and diabetes, which have reached epidemic-like proportions in recent decades, many health experts argue that...

Thumbnail Image
RED 2025. Chapter 2: Roles of local and regional governments

This chapter examines the growing autonomy of regional governments in Latin America and the Caribbean, highlighting that although it has increased since the 1980s and...

Thumbnail Image
A Taxonomy of Colombia’s Informal Labor Market

A taxonomy of the informal labor market is extremely important to understand and handle informality, particularly in a country as Colombia where this phenomenon is...