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.

Tropical deforestation is responsible for 15-20% of total man-made emissions of greenhouse gases. In December 2007, at the international conference of Bali, the United Nations acknowledged that a viable solution to climate change must include a mechanism to limit deforestation and forest degradation.

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.