CRED v.1.4 Technical Report

The CRED v.1.4 technical report details an integrated assessment model designed to optimize the pace and distribution of emissions mitigation investments across 16 global regions. The model utilizes a Cobb-Douglas production function that accounts for the productivity of 'green capital' and employs a vulnerability index to apportion global climate damages. Key updates in version 1.4 include a 2010 base year, expanded regional disaggregation, and a climate module recalibrated to match the MAGICC5.3 model. The model's optimization process maximizes a global utility function based on regional per capita consumption, with an optional feature to calculate the social cost of carbon.

• CRED v.1.4 expands its geographic granularity by disaggregating the world into 16 regions, an increase from the 9 regions used in previous versions.
• The model's economy module assumes that 'green' (emission-reducing) investment is half as productive of income as standard investment, assigning a fixed parameter of s = 0.5 to represent this relative productivity.
• Global climate damages are distributed among regions using a vulnerability index based on three factors: the proportion of GDP in agriculture and tourism, the share of the population living below 5 meters above sea level, and the inverse of freshwater resources per person.
• The model provides four options for global damage functions, ranging from the N-N function (equivalent to DICE 2007) to the H-W function, which incorporates Weitzman's estimates of higher losses at higher temperatures, such as a 50 percent loss of output at 6°C.
• The climate module in v.1.4 was recalibrated to align with the MAGICC5.3 model and uses a default climate sensitivity parameter of 3.0°C for the temperature increase resulting from a doubling of atmospheric CO2 concentrations.
• Abatement costs and potentials are derived from McKinsey Climate Desk Version 2.1 data, with the model assuming that technological progress will make 100 percent abatement of industrial emissions possible in every region by the year 2100.

APA

Ackerman, F., Stanton, E. A., & Bueno, R. (2012). CRED v.1.4 Technical Report. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-CRED-1.4-Technical-Report.pdf

Chicago

Ackerman, Frank, Elizabeth A. Stanton, and Ramón Bueno. CRED v.1.4 Technical Report. Stockholm Environment Institute, 2012. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-CRED-1.4-Technical-Report.pdf.

Wikipedia

{{cite report |last1=Ackerman |first1=Frank |last2=Stanton |first2=Elizabeth A. |last3=Bueno |first3=Ramón |title=CRED v.1.4 Technical Report |publisher=Stockholm Environment Institute |date=August 2012 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-CRED-1.4-Technical-Report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ackerman2012cred, author = {Ackerman, Frank and Stanton, Elizabeth A. and Bueno, Ramón}, title = {{CRED v.1.4 Technical Report}}, institution = {Stockholm Environment Institute}, year = {2012}, month = aug, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-CRED-1.4-Technical-Report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }