Modelling the Economic Impact of Global Warming in a General Equilibrium Framework
AbstractThe issue of global warming has become a major topic in the international environmental debate. Alternative climate policy measures can be evaluated with the help of a simulation model that integrates economic and natural science considerations. A fully integrated assessment of the two-way relationship between the world economy and the climate system requires the incorporation of the repercussions of climate change on economic processes into the analysis. This paper seeks to review the contributions of the economic literature dealing with the modelling of climate change impacts. We look at the structure, assumptions, and results of impact studies to illustrate how climate change impacts can be incorporated into Computable General Equilibrium Models (CGEs). As a point of reference a generic general equilibrium model is established and extended to incorporate climate change impacts on the economy.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 922.
Length: 83 pages
Date of creation: Apr 1999
Date of revision:
Climate Change; Impact Modelling; Damage Function; Computable General Equilibrium Model; Integrated Assessment Framework;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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