Project Description

Developing a strategy for green economy in Kazakhstan

The Ministry of Environment Protection of the Republic of Kazakhstan, jointly together with McKinsey & Company, develops the strategy and the action plan to develop a green economy in Kazakhstan. DIW Econ provides impact assessments of different policy scenarios within an economy-wide model and within a power sector model. The economy-wide assessment is based on a recursively dynamic Computable General Equilibrium (CGE) model for Kazakhstan and assesses different scenarios on fuel efficiency standards and energy efficiency standards affecting transportation, heat generation and other selected industries (e.g. mining, metallurgy). For each scenario, the output includes several macroeconomic figures which will be compared to a Business as Usual scenario. The assessment of the power sector is based on a model of the Kazakh electricity system and takes a closer look at four policy scenarios (“Business as Usual”, “Gas as a bridge to RES”, “Low carbon scenario”, “Aggressive RES”) covering a period from 2013 to 2050. For each of these scenarios, the modelling output includes power sector specific figures such as total, average and marginal costs of electric power generation, basic and peak load by region and for the country as a whole, GHG emissions and additional infrastructure requirements.

Commissioned by:



McKinsey & Company