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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.

Suggested Citation

  • Frank Ackerman, Elizabeth A. Stanton, Ramón Bueno, 2010. "CRED: A New Model of Climate and Development," Working Papers 96, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:96
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    References listed on IDEAS

    as
    1. Chichilnisky, Graciela & Heal, Geoffrey, 1994. "Who should abate carbon emissions? : An international viewpoint," Economics Letters, Elsevier, vol. 44(4), pages 443-449, April.
    2. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, January.
    3. Klaus Keller & Zili Yang & Matt Hall & David F. Bradford, 2003. "Carbon Dioxide Sequestrian: When And How Much?," Working Papers 108, Princeton University, Department of Economics, Center for Economic Policy Studies..
    4. 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.
    5. repec:pri:cepsud:94bradford is not listed on IDEAS
    6. Kristen A. Sheeran, 2006. "Who Should Abate Carbon Emissions? A Note," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(2), pages 89-98, October.
    7. Cooter, Robert & Rappoport, Peter, 1984. "Were the Ordinalists Wrong about Welfare Economics?," Journal of Economic Literature, American Economic Association, vol. 22(2), pages 507-530, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Christoph Hambel & Holger Kraft & Eduardo Schwartz, 2015. "Optimal Carbon Abatement in a Stochastic Equilibrium Model with Climate Change," NBER Working Papers 21044, National Bureau of Economic Research, Inc.
    2. Hambel, Christoph & Kraft, Holger & Schwartz, Eduardo S., 2019. "Optimal carbon abatement in a stochastic equilibrium model with climate change," SAFE Working Paper Series 92, Leibniz Institute for Financial Research SAFE, revised 2019.
    3. Skott, Peter & Davis, Leila, 2013. "Distributional biases in the analysis of climate change," Ecological Economics, Elsevier, vol. 85(C), pages 188-197.
    4. Christian Feige & Karl-Martin Ehrhart & Jan Krämer, 2018. "Climate Negotiations in the Lab: A Threshold Public Goods Game with Heterogeneous Contributions Costs and Non-binding Voting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 343-362, June.
    5. Kemp-Benedict, Eric, 2014. "Shifting to a Green Economy: Lock-in, Path Dependence, and Policy Options," MPRA Paper 60175, University Library of Munich, Germany.
    6. Jae Kyu Myung & Hyoung-Tae An & Su-Yol Lee, 2019. "Corporate Competitiveness Index of Climate Change: A Balanced Scorecard Approach," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    7. Sylvie Geisendorf, 2016. "The impact of personal beliefs on climate change: the “battle of perspectives” revisited," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 551-580, July.
    8. Subramanyam, Veena & Kumar, Amit & Talaei, Alireza & Mondal, Md. Alam Hossain, 2017. "Energy efficiency improvement opportunities and associated greenhouse gas abatement costs for the residential sector," Energy, Elsevier, vol. 118(C), pages 795-807.
    9. Kemp-Benedict, Eric, 2018. "Investing in a Green Transition," Ecological Economics, Elsevier, vol. 153(C), pages 218-236.
    10. 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.

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    More about this item

    Keywords

    climate economics; development; global equity; abatement costs; integrated assessment models;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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