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

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Author Info
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)

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

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. McKibbin, Warwick J. & Wilcoxen, Peter J., 1998. "The theoretical and empirical structure of the G-Cubed model," Economic Modelling, Elsevier, vol. 16(1), pages 123-148, January. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. 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. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!]
    Other versions:
  2. Onno J. Kuik & Barbara Bucher & Michela Catenacci & Etem Karakaya & Richard S.J. Tol, 2006. "Methodological aspects of recent climate change damage cost studies," Working Papers FNU-122, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2006. [Downloadable!]
  3. Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007. [Downloadable!]
  4. Enrica De Cian & Elisa Lanzi & Roberto Roson, 2007. "The Impact of Temperature Change on Energy Demand: A Dynamic Panel Analysis," Working Papers 2007.46, Fondazione Eni Enrico Mattei. [Downloadable!]
  5. Roberto Roson & Francesco Bosello & Enrica De Cian, 2007. "Climate Change, Energy Demand and Market Power in a General Equilibrium Model of the World Economy," Working Papers 2007.71, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  6. Francesco Bosello & Roberto Roson & Richard S.J. Tol, 2004. "Economy-Wide Estimates Of The Implications Of Climate Change: Human Health," Working Papers FNU-57, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2004. [Downloadable!]
    Other versions:
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