These aspects are examined, with particular focus on the assumptions underlying the projections of emissions pathways and the impact this has on the social cost of carbon, which, in turn, is the basis of policy related to the appropriate carbon price/tax. [...] Any climate policies that result in a reduction in the prospects of the poorest should be avoided, even if that means the rest of the world needs to adapt to climate change. [...] Examples include the ‘Model for Energy Supply Strategy Alternatives and their General Environmental Impact’ (MESSAGE) developed by the International Institute of Applied Systems Analysis (IIASA) in Austria; the Integrated Model to Assess the Greenhouse Effect (IMAGE) by the Institute for the Environment (RIVM) in the Netherlands and the Dutch government’s Central Planning Bureau; and the Mini Clim. [...] Assumptions need to be made about the ‘shape’ of the utility function used in the objective function to measure the intrinsic value of per capita consumption—as determined by the elasticity of the marginal utility of consumption. [...] The EU also experienced a reduction in emissions with the re-unification of Germany, which led to the mothballing of many inefficient manufacturing facilities and power plants in the former communist part of the country.
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- Canada
