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  • This research paper introduces the Climate and Regional Economics of Development (CRED) model, an integrated assessment model (IAM) designed to analyze the intersection of climate mitigation and international economic development. The model's primary innovations include a focus on global equity through a concave utility function and the use of McKinsey marginal abatement cost curves to project mitigation costs. The authors argue that achieving climate stabilization requires either a very low discount rate or significant capital transfers from high-income to developing nations.

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    Themes: integrated assessment modelsclimate mitigationinternational equityabatement costsdiscount rates
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    capital flows
    Stockholm Environment Institute

    Document type: Research paper

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