IGES: IGES: Economy and the Environment Group

	Programme Management Office
	Climate Change
	Market Mechanism
	Adaptation
	Forest Conservation
	Freshwater
	Sustainable Consumption and Production
	Economy and Environment
	-Outline -Activities -Publications
	Governance and Capacity
	Kansai Research Centre
	Kitakyushu Urban Centre
	Beijing Office
	Bangkok Office

We develop the economic analytical tools for sustainable development policy impact assessment from economic, social and environmental perspectives, and research policy options for emerging issues such as green growth and environment and trade


Formulating environmentally and economically meaningful policies requires careful impact assessment from economic, social and environmental perspectives in a comprehensive manner. The mission of the IGES Economy and Environment (EE) Group is to contribute to promoting sustainable development through quantitative policy analysis with economic models and econometric analysis. Economic models enable us to scrutinize the sustainable development policies through demonstration of both positive and negative impacts on economy, society and environment. Econometric measures are useful tools based on the real datasets for clarifying hidden relationships between economy and environment. Ultimately, we aim to propose economically viable and environmentally acceptable policies for promoting sustainable development.

Research Components

Integrated policy impact assessment for sustainable development

The Group conducts integrated impact assessment of sustainable development policies based on the specific economic models, such as computable general equilibrium (CGE) models and multi-region input-output (MRIO) models, so as to contribute to formulate economically efficient and environmentally sound policies.

Trade and environment with special focus on embodied emissions

Estimation of GHGs emissions embodied in the tradable commodities is essential to highlight the carbon leakage problem under the emission reduction requirements within the Kyoto Protocol framework. Based on this analysis, the Group aims to provide policy makers with significant implications relevant to responsibility scheme, non-tariff trade measures, and low-carbon economic development.

Green growth through economic instruments and green investment

Green growth, including green investment, greening tax scheme, reform of environmentally-destructive subsidies, and internalisation of externalities into market mechanism, is rapidly gaining global momentum. Along with this stream, the Group implements quantitative assessments in the field of resource circulation, sustainable use of ecosystem services, and energy conservation.

Selected Ongoing Research Projects

Environmental, economic and social impacts of resource circulation systems in Asia

For sustainable development under pressing resource scarcity, there needs to be decoupling of resource consumption from economic development, namely, formulation of stable and effective resource circulation system. The policy issues include functional decline in the domestic resource circulation system due to exports of recyclables to developing countries and the negative impacts on health and environment of improper recycling activities. The IGES EE Group aims to propose effective policy options for mitigating resource constraints by satisfying environmental and social constraints in collaboration with IGES Sustainable Consumption and Production Group as well as with external partners.

Sustainable use of ecosystem services through internalisation of their economic values

Current market mechanisms fail to reflect the genuine values of ecosystem services and thereby accelerate biodiversity loss and habitats destruction. This trend needs to be reversed so as to realise sustainable development, as ecosystem services are vital to economic activities. The Group aims to develop theoretical frameworks and quantitative assessment tools for policy impact assessment and scrutinise policy options for sustainable use of ecosystem services, in collaboration with the IGES Natural Resource Management Group as well as with external partners.

Accounting for embodied emissions and implications for low-carbon policies

Accounting for CO2 emissions embodied in international trade has potential implications for global climate policies, such as carbon leakage and the fairness of allocating responsibilities for emissions. The objective of this research project is to address these issues through quantitative analysis, specifically by means of the MRIO model, and to provide research results to policy-makers and negotiators for better cooperation towards low-carbon societies.

Energy market integration in East Asia

In the context of increasing energy demand and lack of reliable and affordable energy supply in East Asia, single energy market formulation can be one of the solutions. The unified policies and market rules can help both energy deficit countries to cost-effectively procure required energies for continuous growth, and energy surplus countries to increase revenues by systematic sharing of excess. The Group conducts economy-wide impact assessment of energy market integration using a multi-country CGE model, responding to the request from the Economic Research Institute of ASEAN and East Asia.