Net Zero and the economy: Macroeconomic implications for India
Renu KohliIndependent Researcher
The paper examines potential macroeconomic implications of transition to net zero emissions economy. It previews the aggregate output-employment linkages with fossil fuels, that of market structures, institutions, and macroeconomic policies to identity areas of fundamental change. The likely effects upon growth, employment and human health in the decarbonization trade-off are assessed by modelled pathways 1 with a varied mix of mitigating policy actions for major carbon-intensive activities to evaluate differential outcomes. In addition, the economy-wide effects of the structural shift from fossil to clean fuels are considered in brief for the supply and demand components, key agents, consumer prices, technology and investments, financing costs and government accounts. The paper concludes with a discussion of the transformation challenges, major uncertainties and risks.