This article gives an assessment of the relative strengths and weaknesses of a variety of economic modelling approaches commonly used for cost estimates of limiting carbon emissions. The approaches discussed include the ad hoc approach, dynamic optimization approach, input-output approach,...

Using an applied general equilibrium model, we explore the impacts of uniform reduction targets, a uniform carbon tax, and permit trading in the Annex 1 countries for the period 2000-2020. Next, we assess the impacts of enlarging the A-1 coalition to the globe, and allow for global permit...