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The Economics of Climate Change Mitigation

Policies and Options for Global Action beyond 2012

image of The Economics of Climate Change Mitigation

Against the background of a projected doubling of world greenhouse gas emissions by mid-century, this book explores feasible ways to abate them at least cost. Through quantitative analysis, it addresses key climate policy issues including: an ideal set of climate policy tools; the size of the economic and environmental costs of incomplete country or sector coverage of climate change mitigation policies;  how to concretely develop a global carbon market; the case for, and what can we reasonably expect from, R&D and technology support policies; and  the incentives for major emitting countries to join a climate change mitigation agreement.

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Annex 2

An Overview of the OECD ENV-Linkages Model

The OECD ENV-Linkages General Equilibrium (GE) model is the successor to the OECD GREEN model for environmental studies, which was initially developed by the OECD Economics Department (Burniaux, et al. 1992) and is now hosted at the OECD Environment Directorate. GREEN was originally used for studying climate change mitigation policy and culminated in Burniaux (2000). It was developed into the Linkages model, and subsequently became the JOBS/Polestar modelling platform that was used to help underpin the OECD Environmental Outlook to 2020. A version of that model is also currently in use at the World Bank for research in global economic development issues. Previous work using the model includes development of a baseline to 2030 and a study of the consequence of structural change (including some environmental implications) associated with economic growth. Much of the applied work with the model is reported in various chapters of the OECD Environmental Outlook to 2030 (2008). Exploration of the model’s properties and some sensitivity analysis is reported in OECD (2006).

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