Climate and Regional Economics of Development (CRED)
Climate and Regional Economics of Development (CRED) is an integrated assessment model focused on the global distribution of climate damages and climate policy costs. It is designed to estimate both the best pace of investment in mitigation and the best distribution of the cost of that investment to regions of the world. The model takes into consideration that many developing countries are more exposed to climate impacts, and that poverty and inadequate infrastructure and services are major factors in vulnerability to climate change. CRED models utility maximization in an unequal, climate-constrained world.
Its goal is to inform global climate negotiations and help break the stalemate between developed and developing countries.
Key questions addressed:
- What is the optimal level and geographic distribution of investments to meet specific goals (e.g., maximum climate-change mitigation, income equity)?
Sample data inputs:
- Energy intensity
- Discount rates
- Level of investment
Sample quantitative outputs:
- Investment priorities
See the CRED web page for more information.