Integrated assessment of global climate change with learning-by-doing and energy-related research and development

This paper presents a small-scale version of an Integrated Assessment Model (IAM) of global climate change, which is based on a global, regionally differentiated computable general equilibrium (CGE) model with endogenous technological change. This model can be viewed as a basic framework for analyzing a broad range of economic issues related to climate change, in particular since technological change is represented in two ways: on the one hand, there is learning-by-doing (LbD) in non-fossil energy supply technologies, and on the other hand there is research and development (R&D)-driven energy-saving technical progress in production. Computational experiments are added for illustrating the role of technological innovation in a world both with and without cooperation in the solution of the global climate problem.