Part III: The Economics of Stabilisation
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چکیده
Broader behavioural modelling exercises suggest a wide range of costs of climate-change mitigation and abatement, mostly lying in the range –2 to +5% of annual GDP by 2050 for a variety of stabilisation paths. These capture a range of factors, including the shift away from carbon-intensive goods and services throughout economies as carbon prices rise, but differ widely in their assumptions about technologies and costs.
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PART III: The Economics of Stabilisation
• Reducing demand for emissions-intensive goods and services is part of the solution. If prices start to reflect the full costs of production, including the greenhouse gas externality, consumers and firms will react by shifting to relatively cheaper lowcarbon products. Increasing awareness of climate change is also likely to influence demand. But demand-side factors alone are unlikely to achiev...
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