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CRED: A New Model of Climate and Development

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  • Frank Ackerman, Elizabeth A. Stanton, Ramón Bueno

Abstract

This paper describes a new model, Climate and Regional Economics of Development (CRED), which is designed to analyze the economics of climate and development choices. Its principal innovations are the treatment of global equity, calculation of the optimum interregional flows of resources, and use of McKinsey marginal abatement cost curves to project the cost of mitigation. The model shows more equitable scenarios have better climate outcomes; the challenge of climate policy is to persuade high-income countries to accept the need for both international equity and climate protection.

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File URL: http://www.un.org/esa/desa/papers/2010/wp96_2010.pdf
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Bibliographic Info

Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 96.

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Length: 22 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:une:wpaper:96

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Web page: http://www.un.org/esa
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Related research

Keywords: climate economics; development; global equity; abatement costs; integrated assessment models;

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  1. Ackerman, Frank & Stanton, Elizabeth A. & Bueno, Ramón, 2010. "Fat tails, exponents, extreme uncertainty: Simulating catastrophe in DICE," Ecological Economics, Elsevier, vol. 69(8), pages 1657-1665, June.
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Cited by:
  1. Leila Davis & Peter Skott, 2011. "Positional goods, climate change and the social returns to investment," UMASS Amherst Economics Working Papers 2011-24, University of Massachusetts Amherst, Department of Economics.
  2. Peter Skott & Leila Davis, 2011. "Distributional biases in the analysis of climate change," UMASS Amherst Economics Working Papers 2011-22, University of Massachusetts Amherst, Department of Economics.

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