sei-e3-2012-climatepolicydevelopment-9a40ee85e99dd711.pdf

This research paper uses the Climate and Regional Economics of Development (CRED) model to analyze the relationship between climate policy and development assistance. The authors find that while climate and development choices are nearly independent under extreme assumptions of climate risk, development assistance becomes a decisive factor for global climate stabilization under intermediate risk assumptions.

• The interaction between climate and development policy is highly dependent on assumptions regarding climate risk severity and discount rates. If the climate threat is perceived as either very mild or very serious, the two policy domains are nearly independent: the optimal response is to do very little in the former case and a lot in the latter, regardless of development assistance.
• Under intermediate assumptions of climate risk, development assistance can be the determining factor in whether the global climate is stabilized. In one specific scenario, a high level of development assistance is what separates the success or failure of long-term climate stabilization.
• The CRED model demonstrates a non-linear threshold effect between resource transfers and climate outcomes in intermediate scenarios. Transfers up to 3 percent of output have no impact on the climate, while transfers of 6 percent can achieve complete climate stabilization; further increases to 10 percent provide no additional climate benefit.
• In scenarios with DICE damages and a high discount rate, the climate is never stabilized and temperatures rise steadily for 200 years. In this case, emissions from low and middle-income regions increase steadily, and resource transfer limits have virtually no effect on the climate outcome.
• In scenarios with HW damages and a low discount rate, the tradeoff shifts strongly toward mitigation, leading to global temperatures peaking at 1.7–1.8°C in 2100 and emissions dropping to zero by 2100 in almost every region, regardless of resource transfers.
• Resource transfers significantly impact the per capita consumption of low-income regions by 2100. With a 10 percent transfer limit, the ratio of high-income to low-income consumption per capita is projected to drop from 20:1 in 2010 to 10:1 in 2100.

APA

Stockholm Environment Institute (n.d.). sei-e3-2012-climatepolicydevelopment-9a40ee85e99dd711.pdf. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-E3-2012-ClimatePolicyDevelopment.pdf

Chicago

Stockholm Environment Institute. sei-e3-2012-climatepolicydevelopment-9a40ee85e99dd711.pdf. n.d. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-E3-2012-ClimatePolicyDevelopment.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=sei-e3-2012-climatepolicydevelopment-9a40ee85e99dd711.pdf |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-E3-2012-ClimatePolicyDevelopment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendseie32012climatepolicydevelopment9a40ee85e99dd711pdf, author = {{Stockholm Environment Institute}}, title = {{sei-e3-2012-climatepolicydevelopment-9a40ee85e99dd711.pdf}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-E3-2012-ClimatePolicyDevelopment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }