Global economic gains from complying with the Paris Climate Accord

Economists have largely underestimated the global economic damages from climate change. Our work develops two large dimensional global trade models: (a) GTAP-INT, to account for various effects of global warming on national incomes for 139 countries, along with (b) a 50 region GTAP-IAM model, which directly incorporates SSPs and climate feedbacks. All results show considerable global economic gains from complying with the Paris Climate Accord. Model outcomes also show that South Asia, Southeast Asia and Africa are especially and severely impacted at all temperature increases, underscoring the point that many poorer countries are the ones most impacted by climate change. The GTAP-IAM model is illustrated by looking at the costs of emissions reduction compared to the avoided damages in Australia.