This article explores the critical role of labour market imperfections in climate stabilisation costs formation. It shows that the degree of rigidity of the labour markets is a central parameter and we conduct a systematic sensitivity analysis of the model results to this parameter.

Reference GHG emissions scenarios are critical for estimates of the costs of stabilization and for climate policy recommendations.

This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macroeconomic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period.