The Costs of Policies to Reduce Global Emissions of CO2 : Initial Simulation Results with GREEN

The OECD Secretariat has developed a multi-region, multi-sector. dynamic general equilibrium model to quantify the economy-wide and global costs of policies to curb emissions of carbon dioxide (CO2). The project is called the GeneRal Equilibrium ENvironmental model, hereafter referred to as GREEN. The purpose of this paper is to outline the main features of GREEN in a non-technical fashion and to present some preliminary results from three scenarios of alternative international agreements to cut CO2 emissions. The paper also sets out a range of options for possible extensions to the model, with the explicit aim of improving its policy relevance ...