MODELING CLIMATE PROTECTION EXPENDITURE

In this contribution, I introduce the construct of climate protection expenditure in order to link strategies of greenhouse gas emission red uction with macroeconomic variables. In contrast to other studies whic h have been based on a baseline concept, this study proceeds from a ba se year concept in order to determine emission reductions and their co sts. Climate protection expenditure will be calculated as a regionally differentiated, Intertemporal trajectory. This results from a macroec onomic extension of a fuzzy optimization model including a new climate protection cost function. Climate change impacts are considered impli citly within a boundary concept. Then, a climate stabilization scenari o based on a control function will be demonstrated; its economic impli cations and some policy-making aspects will be discussed (C) 1998 Else vier Science Ltd. All rights reserved.