Towards a low-emissions economy: The role of abatement targets and carbon taxes

In 2015, 192 countries signed the Paris Agreement to reduce greenhouse gasesand maintaining the temperature below 2o Celsius by the year 2030. Hence,governments have implemented or will implement various mechanisms to re-duce GHG emissions. In the present work, we developed a CGE model withmechanisms to reduce Greenhouse Gas (GHG) emissions such as abatementtarget and carbon taxes, and we implemented the model for Colombia. Forboth mechanisms, 22% of emission could be reduced compared to the 2030baseline. However, it represented a 0.8% reduction in the GDP and also un-employment rate would raise aboout 2%