Climate policy insights from an open-source economy-wide model

Abstract

Computable general equilibrium (CGE) models can be used to quantify the economic and emissions impacts of climate policies. The Climate PoLicy ANalysis (C-PLAN) model is a CGE model built for Climate Change Commission (CCC). Insights from the model indicate that (1) the economy-wide cost of meeting New Zealand’s 2050 emissions targets is less than one percent of GDP in that year, and (2) the development of a methane-reducing technology for livestock is a key driver of the costs of abating emissions. As the C-PLAN model is documented and open-source, it is hoped that the model contributes to meeting climate goals in New Zealand and other countries.