IDEAS home Printed from https://ideas.repec.org/a/fem/femre3/2014.09-04.html
   My bibliography  Save this article

Climate Change Impacts and Limited Market-driven Adaptation

Author

Listed:
  • Francesco Bosello

    (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and University of Milan)

  • Ramiro Parrado

    (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change)

Abstract

This article addresses one specific criticism that can be raised against economic climate change impact assessments conducted with Computable General Equilibrium (CGE) models: that of overly optimistic assumptions about markets’ ability to react to climate change induced shocks, i.e. market-driven adaptation. These models indeed usually assume frictionless and instantaneous adjustments to a new equilibrium. We demonstrate that these frictions could increase climate change costs from 0.64% to 0.87% of Gross World Product (GWP).

Suggested Citation

  • Francesco Bosello & Ramiro Parrado, 2014. "Climate Change Impacts and Limited Market-driven Adaptation," Review of Environment, Energy and Economics - Re3, Fondazione Eni Enrico Mattei, September.
    • Handle: RePEc:fem:femre3:2014.09-04
    as

    Download full text from publisher

    File URL: http://www.feem.it/getpage.aspx?id=6722
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Howard, Peter H. & Sterner, Thomas, 2022. "Between Two Worlds: Methodological and Subjective Differences in Climate Impact Meta-Analyses," RFF Working Paper Series 22-10, Resources for the Future.
    2. Peter H. Howard & Thomas Sterner, 2017. "Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 197-225, September.

    More about this item

    Keywords

    Climate Change Costs; Adaptation; Computable General Equilibrium Models;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fem:femre3:2014.09-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alberto Prina Cerai (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.