Climate and Regional Economics of Development (CRED)

The paper introduces the Climate and Regional Economics of Development (CRED) model, highlighting its innovations in global equity, resource flow calculation, and the use of McKinsey marginal abatement cost curves for mitigation costs. The model indicates that scenarios prioritizing equity lead to superior climate outcomes, suggesting that the primary policy challenge is securing the commitment of high-income countries to both international equity and climate protection.

• The CRED model introduces three primary innovations: the treatment of global equity, the calculation of optimum interregional resource flows, and the application of McKinsey marginal abatement cost curves to project mitigation costs.
• Analysis using the CRED model demonstrates that scenarios emphasizing greater equity result in improved climate outcomes, identifying the main hurdle for climate policy as the willingness of high-income nations to accept international equity alongside climate protection.

APA

Stockholm Environment Institute (2010). Climate and Regional Economics of Development (CRED). https://www.sei.org/publications/cred-new-model-climate-development-un-desa/

Chicago

Stockholm Environment Institute. Climate and Regional Economics of Development (CRED). 2010. https://www.sei.org/publications/cred-new-model-climate-development-un-desa/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Climate and Regional Economics of Development (CRED) |date=26 July 2010 |url=https://www.sei.org/publications/cred-new-model-climate-development-un-desa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2010climate, author = {{Stockholm Environment Institute}}, title = {{Climate and Regional Economics of Development (CRED)}}, institution = {Stockholm Environment Institute}, year = {2010}, month = jul, url = {https://www.sei.org/publications/cred-new-model-climate-development-un-desa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }