| Introduction : Country: Philippines Description of the Assignment:
The transition to renewable energy is moving faster as part of the global target for net-zero carbon emissions. As a result, economic changes stemming from the energy transition are anticipated to involve production, trade, valuation, investment, and public and private finance, to name a few. These will have profound distributional consequences that negatively affect poor and disadvantaged citizens if not handled properly and adequately. To arrive at a just distribution of costs and benefits, we need a better understanding of the economic effects of shifting from fossil fuels to renewable energy. To measure the impact of critical developments and disruptive transitions, economists have developed tools to study the economy-wide implications of social and economic interdependence for planning and policy-making purposes. A Social Accounting Matrix (SAM) is one of these tools as a comprehensive data system providing an empirical basis for studying intersectoral relationships, inter-regional resource flows, and distribution of income to various population groups. A SAM is a comprehensive itemization of the economic system in a given year, incorporating the structure of production and trade and revenue accruing to capital and labor and from the factors of production to groups of households. Analysts can then use the system to estimate the impact of exogenous factors, such as policy changes or global shifts in supply and demand, on specific groups, industries, and the nation as a whole. Estimation can be a relatively simple multiplier analysis with fixed prices or by calibrating general equilibrium models. In the context of the Just Energy Transition, an Energy Social Accounting Matrix (ESAM) would combine input-output tables from the national accounts with detailed information on i) energy production, distribution, and consumption; ii) labor market conditions; iii) household income and consumption disaggregated by occupational group, income level, and region. The resulting ESAM would enable policymakers to estimate the impact of technological and price changes in the energy sector on domestic industries, regions, trade, and groups of households. The effects of government policies on industries, regions, and households could be modeled. In evaluating the potential of the Philippines to use the ESAM methodology, UNDP will survey data availability in the Philippines. The main requirements for an ESAM are disaggregated supply use tables (IO tables), a household consumption or expenditure survey, and detailed data on energy balances. Other data routinely collected by the Philippine Statistics Office (PSA), such as national accounts and trade data, are also needed. UNDP will hire an economist to conduct the assessment to achieve this objective. The economist will provide substantive technical assistance in producing the report. The consultant will work closely with the Country Economist and experts to be supplied by the Bangkok Regional Hub (BRH).
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