Economic impacts to avoid dangerous climate change using the AIM/CGE model

This study purposes to analyze economic aspects of defined climate policies applying the AIM/CGE[Global] model to understand the economic consequences of abating a large amount of greenhouse gas emissions to avoid dangerous climate change. As a result, higher carbon prices and larger decreases in GDP are observed when emissions are abated more deeply. However, such GDP losses are rather small and insignificant compared to the GDP growth throughout this century. These results suggest that although it is challenging to abate emissions until the level to avoid dangerous climate change, there is a sufficient possibility to achieve it from economic perspectives.