THE ECONOMICS OF CLIMATE-CHANGE MITIGATION IN DEVELOPING-COUNTRIES

This paper discusses methodological lessons and empirical results of c limate change mitigation assessment for developing countries with a sp ecial emphasis on economic studies, National study results are discuss ed in relation to expected general international development trends in greenhouse gas emissions. It is concluded that greenhouse gas emissio ns from developing countries certainly will increase in the future due to economic development needs. There is however a large and relativel y cheap potential for emission reductions connected to efficiency impr ovements in industrial production and general energy efficiency improv ements in the countries. The implementation of greenhouse gas mitigati on strategies is interrelated with general national economic developme nt policies. The macroeconomic impact of implementing climate change m ititgation strategies is assessed on the basis of two case studies for Zimbabwe and Venezuela and it is concluded that project implementatio n and economic welfare improvement in some cases can be achieved simul taneously. The methodological basis for macroeconomic assessment and f or the establishment of baseline scenarios are critically discussed in relation to the specific planning context of developing countries and recommendations are given on research requirements. Copyright (C) 199 6 Elsevier Science Ltd.