Full Title: Global economic and environmental outcomes of the Paris Agreement
Author(s): Weifeng Liu, Warwick J. McKibbin, Adele Morris, and Peter J. Wilcoxen
Publisher(s): The Brookings Institution
Publication Date: January 1, 2019
Full Text: Download Resource
Description (excerpt):
The Paris Agreement, adopted by the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2015, has now been signed by 197 countries. It entered into force in 2016. The agreement established a process for moving the world toward stabilizing greenhouse gas (GHG) concentrations at a level that would avoid dangerous climate change. The centerpiece of the agreement is a set of pledges made by participating countries, known as Nationally Determined Contributions (NDCs), to near-term GHG targets they plan to achieve.
In “Global Economic and Environmental Outcomes of the Paris Agreement” (PDF), Weifeng Liu, Warwick McKibbin, Adele Morris, and Peter J. Wilcoxen use a multi-region model of the world economy to analyze the economic and environmental outcomes that are likely to result from these NDCs. To construct the modeling scenario, the authors convert the disparate NDC formulations into estimated reductions in CO2 emissions relative to a baseline scenario with no new climate policies. They then solve for the tax rate path on CO2 in each region that achieves the NDC-consistent emissions reductions in the target year, 2030 for most regions.