The Economics of Greenhouse Gas Mitigation in Developing Asia

This study uses an economy–energy–climate model to assess the long-term effects of Paris Agreement pledges on developing Asia, in comparison with business as usual and more ambitious scenarios to limit warming to 2°C. It finds potential for modest macroeconomic costs of ambitious mitigation, but that clean energy investment needs are substantial. When costs, benefits of avoided climate change, and cobenefits are considered together, investment in mitigation policy is found to have substantial economic returns for the region—if action is taken rapidly and international carbon market mechanisms are implemented to allow mitigation to occur where it is least costly.