Policy Challenges for Emerging and Developing Economies: Lessons from the Past Decade

Aiming better: Government support for households and firms during the energy crisis

“…There are concerns that if support is provided in an asymmetrical manner that promotes imbalances in the competitive positions of the EU member states, a "race to the top" reaction in providing budgetary support could increase risks to fiscal sustainability especially of the more vulnerable Member States. 29…”

Long-term scenarios: incorporating the energy transition

“…countries. 11 Potential output is projected out to 2060 by modelling the trend input components as follows:…”

“…The initial momentum component is calculated as a residual given the estimated trend labour efficiency growth and that predicted by 10 In this framework, labour efficiency (E) and total factor productivity (TFP) -that part of output not explained by factor inputs -are closely related but distinct concepts: TFP = E . 11 This parameter value roughly corresponds to the wage share in advanced economies and has proven to be quite stable in time. This is less true of emerging-market economies, however, and future work could consider the consequences of allowing the wage share to vary across country, over time, or both.…”

“…Total investment in low-carbon electricity generation capacity can be computed by summing across the technologies i listed in Table A B.1: = , [11] It can be useful to express this series as a percentage of GDP ( ):…”