Global Warming Induced Water-Cycle Changes and Industrial Production – A Scenario Analysis for the Upper Danube River Basin
AbstractUsing the environmental decision support system DANUBIA, we analyze the effects of climate change on industry and compare the effectiveness of different adaptation strategies. The observed area covers Germany and Austria up to 2025. Since themain effects of climate change in this region are expected to be caused by changes in the water-cycle, we place a special focus on the exemplary region of the upper Danube catchment area. Industry is the main regional user of water resources.Water is an essential production factor and is used in almost every production process of a manufactured good. We apply estimates of regional production functions, based on AFiD-panel micro-data for Germany, to calibrate regional industrial production and water usage within DANUBIA. Thus, we are able to simulate region-specific effects of climate change and the impact of social scenarios using an innovative model of the reciprocal influences of a huge network of interdisciplinary research areas. Simulation results show wide regional differences in production site reactions as well as between differing scenarios. Comparing scenarios of moderate and serious climate change, we are able to illustrate the severe environmental effects in some regions and to determine considerable economic effects on regional economic growth.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 231 (2011)
Issue (Month): 3 (June)
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Environmental decision support system; climate change; water-cycle; river basin management;
Other versions of this item:
- Christoph Jeßberger & Maximilian Sindram & Markus Zimmer, 2010. "Global Warming Induced Water-Cycle Changes and Industrial Production – A Scenario Analysis for the Upper Danube River Basin," Ifo Working Paper Series Ifo Working Paper Nr. 94, Ifo Institute for Economic Research at the University of Munich.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
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