Dominica, Grenada, Saint Lucia, and Saint Vincent and the Grenadines - Country Climate and Development Report : Macro Modeling Annex (English)

This regional Country Climate and Development Report (CCDR) focuses on four countries of the 11-member Organization of Eastern Caribbean States (OECS) - Dominica, Grenada, Saint Lucia, and Saint Vincent and the Grenadines. The four countries chosen as the focus for this report are the only OECS member countries eligible for concessional International Development Association (IDA) financing for development objectives. Macro-structural modeling was done for each of the four IDA OECS countries using a country-specific Climate Change Macro-Fiscal Model (MFMod-CC). The MFMod-CC is the extended version of the MFMod - the World Bank's macro-structural model already used to do core macro-modeling for each of the OECS countries. MFMod-CC was used to model the linkages between damages caused by climate change, climate adaptation, and macroeconomic aggregates. A MFMod-CC has been developed for each of the OECS countries to: (i) Create a “baseline” growth scenario up to 2050 for each country. (ii) Model the impact of climate change-related shocks on the economy under different climate future scenarios up to 2050; (iii) Model selected adaptation measures in terms of reduced damages, investment costs and co-benefits, and the impact on macroeconomic aggregates; and (iv) Model alternative financing options for climate adaptation investments, including deficit financing, increasing taxes, or reallocating expenditures.