Carbon-pricing instruments to decarbonize the power and transport sectors in Sri Lanka
The Sri Lankan government, in conjunction with the World Bank’s Partnership for Market Readiness, commissioned Vivid Economics to provide quantitative modelling of the economic impact of possible carbon pricing instruments in Sri Lanka.
The approach supplements the Vivid Economy-Wide (ViEW) model – a recursive dynamic CGE model – with a bottom-up model of the transport sector to assess decarbonisation of the electricity and transport sectors in detail. This holistic approach captures both broad economy-wide and inter-sectoral impacts as well as detailed sector-specific impacts. Vivid Economics will also hold a high-level workshop for key Ministry staff and key stakeholders to discuss the results and policy options.