Integrated Assessment of the Instruments and the Fiscal and Market-Based Incentives of International Climate Change Policies and their Impacts (IACCP)

In the existing literature the estimation of the effect of unilateral climate change policy measures and their effectiveness is done primarily in ”Computable General Equilibrium“ (CGE) models or based on “Integrated Assessment Models” (IAM). The selection of parameter values for the required calibration of the models is often ad hoc and based on various studies that are neither consistent to each other nor with the theoretical modeling. The objective of this project is to develop consistent and integrated approaches to enhance climate change policy advice. For this purpose, the structure of the estimated equations is derived from research results and based on theoretically modeling and thus links the estimated and micro-founded results with consistently constructed CGE-models which are then employed for the analysis of climate policy scenarios. This represents a significant methodological development to existing Integrated Assessment Models and in particular combines the research in the international trade area with that of climate debate.

The results of the project include:

• Construction of well suited databases to be used for the analysis of international climate policy 
• Evaluating the instruments of international climate change policy 
• Development of indices for international climate change policies 
• Prognosis of the welfare effects of climate change policy objectives with a special focus on the long term consequences 
• Conveying the findings to a wide audience