IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Economic Impact of Climate Change

  • Richard S. J. Tol

This paper surveys the literature on the economic impact of climate change. Different methods have been used to estimate the impact of climate change on human welfare. Studies agree that there are positive and negative impacts. In the short term, positive impacts may dominate, but these are largely sunk. In the longer term, there are net negative impacts. Poorer people tend to be more vulnerable to climate change. There is a trade-off between development policy and climate policy. Estimated aggregate impacts are not very large, but they are uncertain and incomplete. Estimates of the marginal impacts suggest that greenhouse gas emissions should be taxed, and that the emission reduction targets announced by politicians are probably too ambitious. Copyright 2010 die Autoren Journal compilation 2010, Verein für Socialpolitik und Blackwell Publishing Ltd.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2516.2010.00326.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Verein für Socialpolitik in its journal Perspektiven der Wirtschaftspolitik.

Volume (Year): 11 (2010)
Issue (Month): s1 (05)
Pages: 13-37

as
in new window

Handle: RePEc:bla:perwir:v:11:y:2010:i:s1:p:13-37
Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6493
Email:


More information through EDIRC

Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=1465-6493

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.:

as in new window
  1. Richard S.J. Tol, 2002. "Emission Abatement Versus Development As Strategies To Reduce Vulnerability To Climate Change: An Application Of Fund," Working Papers FNU-12, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2002.
  2. David Anthoff & Richard S.J. Tol, 2007. "On International Equity Weights And National Decision Making On Climate Change," Working Papers FNU-127, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2007.
  3. Michaelowa, Axel & Michaelowa, Katharina, 2005. "Climate or development: Is ODA diverted from its original purpose?," HWWI Research Papers 4-2, Hamburg Institute of International Economics (HWWI).
  4. Horowitz, John K. & McConnell, Kenneth E., 2002. "A Review of WTA/WTP Studies," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 426-447, November.
  5. Roberto Roson & Francesco Bosello & Marco Lazzarin & Richard S.J. Tol, 2004. "Economy-Wide Estimates of the Implications of Climate Change: Sea Level Rise," Working Papers 2004.96, Fondazione Eni Enrico Mattei.
  6. Masters, William A. & McMillan, Margaret S., 2001. "Climate And Scale In Economic Growth," Miscellaneous Papers 11845, Agecon Search.
  7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  8. Richard S.J. Tol, 2004. "The Double Trade-Off Between Adaptation And Mitigation For Sea Level Rise: An Application Of Fund," Working Papers FNU-48, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2004.
  9. Richard S.J. Tol, 2006. "Why Worry About Climate Change? A Research Agenda," Working Papers 2006.136, Fondazione Eni Enrico Mattei.
  10. Blackorby, Charles & Donaldson, David, 1984. "Social criteria for evaluating population change," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 13-33, November.
  11. Marc D. Davidson, 2008. "Wrongful Harm to Future Generations: The Case of Climate Change," Environmental Values, White Horse Press, vol. 17(4), pages 471-488, November.
  12. Hamilton, James D., 1996. "This is what happened to the oil price-macroeconomy relationship," Journal of Monetary Economics, Elsevier, vol. 38(2), pages 215-220, October.
  13. Narita, Daiju & Tol, Richard S. J. & Anthoff, David, 2009. "Economic Costs of Extratropical Storms Under Climate Change: An Application of FUND," Papers WP274, Economic and Social Research Institute (ESRI).
  14. Anna Alberini & Aline Chiabai, 2006. "Using Expert Judgment to Assess Adaptive Capacity to Climate Change: Evidence From a Conjoint Choice Survey," ERSA conference papers ersa06p292, European Regional Science Association.
  15. Richard S.J. Tol, 2007. "The Social Cost Of Carbon: Trends, Outliers And Catastrophes," Working Papers FNU-144, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
  16. Tol, Richard S. J. & Verheyen, Roda, 2004. "State responsibility and compensation for climate change damages--a legal and economic assessment," Energy Policy, Elsevier, vol. 32(9), pages 1109-1130, June.
  17. Nelson, Julie A., 2009. "Between a rock and a soft place: Ecological and feminist economics in policy debates," Ecological Economics, Elsevier, vol. 69(1), pages 1-8, November.
  18. Gary Yohe & Michael Schlesinger, 2002. "The economic geography of the impacts of climate change," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 311-341, July.
  19. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," Working Papers 15, Center for Global Development.
  20. Roy Brouwer & Frank Spaninks, 1999. "The Validity of Environmental Benefits Transfer: Further Empirical Testing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 95-117, July.
  21. Fankhauser, Samuel & Tol, Richard S.J. & Pearce, David W., 1998. "Extensions and alternatives to climate change impact valuation: on the critique of IPCC Working Group III's impact estimates," Environment and Development Economics, Cambridge University Press, vol. 3(01), pages 59-81, February.
  22. 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.
  23. Samuel Fankhauser & Richard Tol & DAVID Pearce, 1997. "The Aggregation of Climate Change Damages: a Welfare Theoretic Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 249-266, October.
  24. Francesco Bosello & Roberto Roson & Richard S.J. Tol, 2005. "Economy-Wide Estimates of the Implications of Climate Change: Human Health," Working Papers 2005.97, Fondazione Eni Enrico Mattei.
  25. Nelson, Julie A., 2008. "Economists, value judgments, and climate change: A view from feminist economics," Ecological Economics, Elsevier, vol. 65(3), pages 441-447, April.
  26. Anthoff, David & Tol, Richard S. J. & Yohe, Gary W., 2009. "Discounting for Climate Change," Economics Discussion Papers 2009-15, Kiel Institute for the World Economy.
  27. Samuel Fankhauser & Richard S.J. Tol, 2001. "On Climate Change And Economic Growth," Working Papers FNU-10, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2002.
  28. 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.
  29. Plambeck, Erica L & Hope, Chris, 1996. "PAGE95 : An updated valuation of the impacts of global warming," Energy Policy, Elsevier, vol. 24(9), pages 783-793, September.
  30. Minh Ha-Duong & Nicolas Treich, 2004. "Risk Aversion, Intergenerational Equity and Climate Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(2), pages 195-207, June.
  31. Engerman, Stanley L., 2003. "Comment on: Tropics, germs and crops: How endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 41-47, January.
  32. Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
  33. Richard S.J. Tol & Samuel Fankhauser & Richard G. Richels & Joel B. Smith, 2000. "How Much Damage Will Climate Change Do?," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 1(4), pages 179-206, October.
  34. Robert Mendelsohn & William D. Nordhaus & Shaw, Daigee, 1992. "The Impact of Climate on Agriculture: A Ricardian Approach," Cowles Foundation Discussion Papers 1010, Cowles Foundation for Research in Economics, Yale University.
  35. David Anthoff & Richard S. J. Tol & Gary W. Yohe, 2008. "Risk Aversion, Time Preference, and the Social Cost of Carbon," Papers WP252, Economic and Social Research Institute (ESRI).
  36. Schafer, Andreas & Jacoby, Henry D., 2006. "Vehicle technology under CO2 constraint: a general equilibrium analysis," Energy Policy, Elsevier, vol. 34(9), pages 975-985, June.
  37. Amiel, Yoram & Creedy, John & Hurn, Stan, 1999. " Measuring Attitudes towards Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(1), pages 83-96, March.
  38. Richard S. J. Tol, 2009. "The Economic Effects of Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 29-51, Spring.
  39. 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.
  40. Hope, Chris, 2008. "Discount rates, equity weights and the social cost of carbon," Energy Economics, Elsevier, vol. 30(3), pages 1011-1019, May.
  41. Helgeson, Jennifer & Dietz, Simon & Atkinson, Giles D. & Hepburn, Cameron & Sælen, Håkon, 2009. "Siblings, not triplets: social preferences for risk, inequality and time in discounting climate change," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 3, pages 1-28.
  42. Butkiewicz, James L. & Yanikkaya, Halit, 2005. "The impact of sociopolitical instability on economic growth: Analysis and implications," Journal of Policy Modeling, Elsevier, vol. 27(5), pages 629-645, July.
  43. Richard Tol, 2002. "Estimates of the Damage Costs of Climate Change, Part II. Dynamic Estimates," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(2), pages 135-160, February.
  44. Richard S.J. Tol & Kristie L. Ebi & Gary W. Yohe, 2006. "Infectious Disease, Development, And Climate Change: A Scenario Analysis," Working Papers FNU-109, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006.
  45. William D. Nordhaus, 1992. "Rolling the 'Dice': An Optimal Transition Path for Controlling Greenhouse Gases," Cowles Foundation Discussion Papers 1019, Cowles Foundation for Research in Economics, Yale University.
  46. Kreps, David M. & Porteus, Evan L., 1979. "Temporal von neumann-morgenstern and induced preferences," Journal of Economic Theory, Elsevier, vol. 20(1), pages 81-109, February.
  47. Maria Berrittella & Andrea Bigano & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis Of Climate Change Impacts On Tourism," Working Papers FNU-49, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004.
  48. Paavola, Jouni & Adger, W. Neil, 2006. "Fair adaptation to climate change," Ecological Economics, Elsevier, vol. 56(4), pages 594-609, April.
  49. Breslow, Paul B. & Sailor, David J., 2002. "Vulnerability of wind power resources to climate change in the continental United States," Renewable Energy, Elsevier, vol. 27(4), pages 585-598.
  50. van den Bergh, Jeroen C. J. M., 2004. "Optimal climate policy is a utopia: from quantitative to qualitative cost-benefit analysis," Ecological Economics, Elsevier, vol. 48(4), pages 385-393, April.
  51. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
  52. Tol, Richard S. J. & Narita, Daiju & Anthoff, David, 2008. "Damage Costs of Climate Change through Intensification of Tropical Cyclone Activities: An Application of FUND," Papers WP259, Economic and Social Research Institute (ESRI).
  53. David Anthoff & Cameron Hepburn & Richard S.J. Tol, 2006. "Equity weighting and the marginal damage costs of climate change," Working Papers FNU-121, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2006.
  54. Spash, Clive L., 2007. "The economics of climate change impacts a la Stern: Novel and nuanced or rhetorically restricted?," Ecological Economics, Elsevier, vol. 63(4), pages 706-713, September.
  55. Robert Ayres & Jörg Walter, 1991. "The greenhouse effect: Damages, costs and abatement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(3), pages 237-270, September.
  56. Epstein, Larry G & Zin, Stanley E, 1989. "Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework," Econometrica, Econometric Society, vol. 57(4), pages 937-69, July.
  57. P. Michael Link & Richard S.J. Tol, 2004. "Possible Economic Impacts of a Shutdown of the Thermohaline Circulation: an Application of FUND," Working Papers FNU-42, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2004.
  58. Maddison, David, 2003. "The amenity value of the climate: the household production function approach," Resource and Energy Economics, Elsevier, vol. 25(2), pages 155-175, May.
  59. Frankhauser, Samuel & Tol, Richard SJ, 1996. "Climate change costs : Recent advancements in the economic assessment," Energy Policy, Elsevier, vol. 24(7), pages 665-673, July.
  60. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
  61. Frank Ackerman, 2008. "Climate Economics in Four Easy Pieces," Development, Palgrave Macmillan, vol. 51(3), pages 325-331, September.
  62. Schafer, Andreas & Jacoby, Henry D., 2005. "Technology detail in a multisector CGE model: transport under climate policy," Energy Economics, Elsevier, vol. 27(1), pages 1-24, January.
  63. Richard S.J. Tol & Samuel Fankhauser & Richard G. Richels & Joel B. Smith, 2000. "How Much Damage Will Climate Change Do? Recent Estimates," Working Papers FNU-2, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2000.
  64. Tang, Kam Ki & Petrie, Dennis & Rao, D.S. Prasada, 2009. "The income-climate trap of health development: A comparative analysis of African and Non-African countries," Social Science & Medicine, Elsevier, vol. 69(7), pages 1099-1106, October.
  65. Geoffrey Heal, 2008. "Climate Economics: A Meta-Review and Some Suggestions," NBER Working Papers 13927, National Bureau of Economic Research, Inc.
  66. Cameron Hepburn & Hakon Sælen & Giles Atkinson, 2008. "Risk, inequality and time in the welfare economics of climate change: is the workhorse model underspecified?," Economics Series Working Papers 400, University of Oxford, Department of Economics.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bla:perwir:v:11:y:2010:i:s1:p:13-37. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.