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Climate change and economic growth: impacts and interactions

Author

Listed:
  • Roberto Roson
  • Dominique Van der Mensbrugghe

Abstract

An integrated assessment model (ENVISAGE), including a CGE-based economic module and a climate module, is used to assess the effects of a variety of economic impacts induced by climate change. These impacts include: sea level rise, variations in crop yields, water availability, human health, tourism, energy demand. Two scenarios are compared: a baseline growth path, disregarding any climate change effect, and a counterfactual case, accounting for the impacts. The model assesses the overall magnitude of the impacts, their regional distribution, and the contribution of each specific impact to the overall variation of income and welfare. Results (e.g., on real GDP) show that climate change impacts are substantial, especially for developing countries and in the long run, so that mitigation/adaptation policies are needed to make economic growth sustainable.

Suggested Citation

  • Roberto Roson & Dominique Van der Mensbrugghe, 2012. "Climate change and economic growth: impacts and interactions," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 270-285.
  • Handle: RePEc:ids:ijsuse:v:4:y:2012:i:3:p:270-285
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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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