Figure 7-2: Projections of GDP
losses and marginal costs in Annex II countries in the year 2010 from global models:
(a) GDP losses and (b) marginal costs. The reductions in projected GDP are
for the year 2010 relative to the model reference case GDP. These estimates are
based on results of an Energy Modeling Forum study. The projections reported in
the figures are for four regions, which constitute Annex II. The models examined
two scenarios. In the first, each region makes the prescribed reduction with only
domestic trading in carbon emissions. In the second, Annex B trading is permitted
and thereby marginal costs are equal across regions. For the key factors, assumptions,
and uncertainties underlying the studies, see Box
7-1.
