CRED V.1.3 TECHNICAL REPORT

The CRED v.1.3 model is an integrated assessment tool designed to project global climate and development scenarios over a 300-year period. It focuses on the distribution of climate damages and policy costs across nine global regions, utilizing a Cobb-Douglas production function and a vulnerability index to allocate damages. The model incorporates updated population data, four selectable damage functions, and abatement cost curves based on McKinsey data to inform global climate negotiations.

• CRED v.1.3 is an integrated assessment model that projects global climate and development scenarios at 10-year intervals over a 300-year time span, using a 2005 base year.
• The model divides the world into nine regions: three high-income (United States, Europe, and Other high-income) and six developing (Latin America and the Caribbean, Middle East, Russia and non-EU Eastern Europe, Africa, China, and Other developing Asia).
• The economy module employs a Cobb-Douglas production function where mitigation investment ('green capital') is assumed to be half as productive of income as standard investment (s = 0.5).
• CRED v.1.3 offers four damage function options (NN, HN, NW, HW) that combine different low-temperature and high-temperature estimates from Nordhaus, Hanemann, and Weitzman.
• Global 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-meter elevation, and freshwater resources per person.
• Abatement costs and potentials are derived from McKinsey 2030 cost curves, with the model assuming that 100 percent abatement of industrial emissions becomes possible in every region by 2105.
• The model's optimization process maximizes a global utility function based on the discounted sum of the logarithms of regional per capita consumption, using a default pure time preference rate of 0.1 percent per year.

APA

ACKERMAN, F., STANTON, E. A., & BUENO, R. (2012). CRED V.1.3 TECHNICAL REPORT. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/Economics_of_climate_policy/SEI-CRED13-Tech-Report.pdf

Chicago

ACKERMAN, FRANK, ELIZABETH A. STANTON, and RAMÓN BUENO. CRED V.1.3 TECHNICAL REPORT. Stockholm Environment Institute, 2012. https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/Economics_of_climate_policy/SEI-CRED13-Tech-Report.pdf.

Wikipedia

{{cite report |last1=ACKERMAN |first1=FRANK |last2=STANTON |first2=ELIZABETH A. |last3=BUENO |first3=RAMÓN |title=CRED V.1.3 TECHNICAL REPORT |publisher=Stockholm Environment Institute |date=25 January 2012 |url=https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/Economics_of_climate_policy/SEI-CRED13-Tech-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.1.3 TECHNICAL REPORT}}, institution = {Stockholm Environment Institute}, year = {2012}, month = jan, url = {https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/Economics_of_climate_policy/SEI-CRED13-Tech-Report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }