THE COST OF CLIMATE CHANGE MITIGATION POLICY IN EASTERN EUROPE AND FORMER SOVIET UNION

This paper provides one of the few assessments of the economic implications of climate change policies in the important region of Eastern Europe and post-Soviet states. We use an integrated assessment model to evaluate the consequences of implementing climate policies consistent with the targets proposed by the Major Economies Forum by mid-century. We decompose the economic impacts in terms of domestic abatement costs, of oil trading and of international emission permit trading for a variety of scenarios, and show that these could be substantial for this region. The results point towards innovation and economic diversification as key complementary measures to be implemented in preparation of climate mitigation strategies.