Mitigation, Globalization and Development
Image: http://www.flickr.com/photos/kylewood/4821464510/
Speaker: Marian Leimbach
Description
This research activity investigates the link between mitigation policies, macroeconomic patterns and economic development. The economic costs of climate change mitigation are determined as much by macroeconomic patterns such as international trade, endogenous technological change and technology transfers as by the characteristics of the underlying energy systems. It is an open research question whether technological progress and climate policy-induced technology diffusion support convergence or divergence of economic growth in different world regions. This is particularly relevant for the commitment of developing countries to cooperative climate action. Climate policies will only be successful if they are able to address the development needs of the developing world effectively.
The aim of this research activity is to contribute to a better understanding of the interconnections of climate policy, trade, endogenous international technology diffusion, economic development, poverty reduction and cross-country convergence.
Methods
Our basic methods are modelling and computer simulation. Intertemporal optimization models of different scales rooted in endogenous growth theory and general equilibrium theory are used. The analysis of development patterns is supplemented by the use of econometric methods.
Products
- Assessment of regional mitigation costs
- Endogenous growth module, based on domestic R&D investments and international technology diffusion, to be integrated into REMIND
- Quantitative and qualitative analyses of the interaction of international trade, economic development (in particular in developing world regions) and climate policies.
