The Inter-Regional System of Analysis for ASEAN: A Manual

The Inter-Regional System of Analysis for ASEAN (IRSA-ASEAN) is a static, multi-country, computable general equilibrium (CGE) model. It is a unique model constructed to understand the impact of coordinated and non-coordinated policies, e.g. energy subsidy reduction and carbon tax implementation, on the economic and environmental performances of six of the ten member countriesof ASEAN, namely Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Although it is robust enough to be an insightful tool for policy analysis in other issues, e.g. trade, the IRSA-ASEAN model contains a unique feature that makes it particularly valuable for policies related to environment and energy sectors, namely endogenized revenue recycling mechanisms. This paper is intended to become a technical manual for the IRSA-ASEAN model that will help to better analyze empirical results in the authors’ other papers.