ABSTRACT
This chapter shows that list of global-warming research priorities is dictated by the kind of information that will assist the policy makers of the member governments. A survey undertaken by the Organization for Economic Cooperation and Development shows that there is several applied general equilibrium (AGE) models that analyze costs in a single-country context. There is a need to develop a multisector, multicountry, dynamic AGE model to quantify the medium- and long-term economic costs of reducing emissions of greenhouse gases on a global basis. With a multisector, multicountry, dynamic AGE model, there will be the possibility of simulating economy-wide and global costs of alternative policies, including different types of international agreements to limit emissions. For tradable emission permits, a major issue to be resolved will be an agreement on the initial allocation of rights. The chapter concludes by offering some suggestions for research in the agriculture and forestry sectors specifically.
