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The economic impact of a shutdown of the Thermohaline Circulation: an application of FUND

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Author Info
P. Michael Link
Richard S.J. Tol () (Economic and Social Research Institute, Dublin)

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Abstract

The integrated assessment model FUND 2.8n is applied in an analysis of the overall economic consequences in a scenario of a shutdown of the thermohaline circulation (THC). Monetized market and non-market impacts of changes in environmental conditions following a THC collapse are determined for 207 individual countries. Eight different response patterns can be identified. The dominant pattern is that a THC shutdown has an offsetting effect on the underlying warming trend. Depending on whether the impacts of warming are initially beneficial or detrimental, the economic effects of a THC collapse show distinct regional variability. Key economic sectors affected in a THC shutdown scenario are water resources and energy consumption, as well as cardiovascular and respiratory diseases among health impacts. The maximum, national impact of a collapse of the THC turns out to be of the magnitude of a few per cent of GDP, but the global impact is much smaller. Considering the low probability of occurrence, a THC shutdown does not call for drastic action at present.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/Link_Working_Paper_FNU-103.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-103.

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Length: 19 pages
Date of creation: May 2006
Date of revision: May 2006
Handle: RePEc:sgc:wpaper:103

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Related research
Keywords: Fisheries; climate change;

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Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters

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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. Brian S. Fisher & Guy Jakeman & Hom M. Pant & Malte Schwoon & Richard S.J. Tol, 2005. "Chimp: A Simple Population Model For Use In Integrated Assessment Of Global Environmental Change," Working Papers FNU-69, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2005. [Downloadable!]
  2. Robert J. Nicholls & Richard S.J. Tol & Athanasios T. Vafeidis, 2005. "Global Estimates Of The Impact Of A Collapse Of The West Antarctic Ice Sheet: An Application Of Fund," Working Papers FNU-78, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2005. [Downloadable!]
  3. Jacqueline M. Hamilton, 2004. "Climate and the Destination Choice of German Tourists," Working Papers 2004.21, Fondazione Eni Enrico Mattei. [Downloadable!]
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  4. Richard S.J. Tol, 2002. "Technology Protocols For Climate Change: An Application Of Fund," Working Papers FNU-14, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2002. [Downloadable!]
  5. Hamilton, Jacqueline M., 2007. "Coastal landscape and the hedonic price of accommodation," Ecological Economics, Elsevier, vol. 62(3-4), pages 594-602, May. [Downloadable!] (restricted)
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  6. Maria Berrittella & Katrin Rehdanz & Arjen Y. Hoekstra & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Restricted Water Supply: A Computable General Equilibrium Analysis," Working Papers FNU-93, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2006. [Downloadable!]
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