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Economy-Wide Estimates of the Implications of Climate Change: Sea Level Rise

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  • Roberto Roson

    (Fondazione Eni Enrico Mattei, The Abdus Salam International Centre for Theoretical Physics and ca’ Foscari Unversity of Venice)

  • Francesco Bosello

    (Fondazione Eni Enrico Mattei and The Abdus Salam International Centre for Theoretical Physics)

  • Marco Lazzarin

    (Fondazione Eni Enrico Mattei and The Abdus Salam International Centre for Theoretical Physics)

  • Richard S.J. Tol

    (Centre for Marine and Climate Research, Hamburg University, Institute for Environmental Studies, Vrije Universiteit and Center for Integrated Study of the Human Dimensions of Global Change, Carnegie Mellon University)

Abstract

The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. Overall, general equilibrium effects increase the costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions that do a lot of dike building, but utility falls, least in regions that build a lot of dikes and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.96.

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Date of creation: Jun 2004
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Handle: RePEc:fem:femwpa:2004.96

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Keywords: Impacts of climate change; Sea level rise; Computable general equilibrium;

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  1. Tol, Richard S. J., 1996. "The damage costs of climate change towards a dynamic representation," Ecological Economics, Elsevier, vol. 19(1), pages 67-90, October.
  2. Bosello, Francesco & Roson, Roberto & Tol, Richard S.J., 2006. "Economy-wide estimates of the implications of climate change: Human health," Ecological Economics, Elsevier, vol. 58(3), pages 579-591, June.
  3. Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-37, July.
  4. McKibbin, W.J. & Wilcoxen, P.J., 1995. "The Theoretical and Empirical Structure of the G-Cubed Model," Papers 118, Brookings Institution - Working Papers.
  5. Roberto Roson & Richard s.J. Tol, 2003. "An Integrated Assessment Model Of Economy-Energy-Climate – The Model Wiagem: A Comment," Working Papers FNU-26, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
  6. Andrea Bigano & Maria Berrittella & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis of Climate Change Impacts on Tourism," Working Papers 2004.127, Fondazione Eni Enrico Mattei.
  7. Fankhauser, Samuel & S.J. Tol, Richard, 2005. "On climate change and economic growth," Resource and Energy Economics, Elsevier, vol. 27(1), pages 1-17, January.
  8. Roy Darwin & Richard Tol, 2001. "Estimates of the Economic Effects of Sea Level Rise," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(2), pages 113-129, June.
  9. William R. Cline, 1992. "Economics of Global Warming, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 39.
  10. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  11. Yohe Gary & Neumann James & Ameden Holly, 1995. "Assessing the Economic Cost of Greenhouse-Induced Sea Level Rise: Methods and Application in Support of a National Survey," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages S78-S97, November.
  12. R K Turner & N Adger & P Doktor, 1995. "Assessing the economic costs of sea level rise," Environment and Planning A, Pion Ltd, London, vol. 27(11), pages 1777-1796, November.
  13. Oliver Deke & Kurt Georg Hooss & Christiane Kasten & Gernot Klepper & Katrin Springer, 2001. "Economic Impact of Climate Change: Simulations with a Regionalized Climate-Economy Model," Kiel Working Papers 1065, Kiel Institute for the World Economy.
  14. Richard Tol, 2002. "Estimates of the Damage Costs of Climate Change. Part 1: Benchmark Estimates," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(1), pages 47-73, January.
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  1. > Environmental and Natural Resource Economics > Climate economics > Impacts of climate change
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