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Economic and Welfare Impacts of Climate Change on Developing Countries

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  • Paul Winters
  • Rinku Murgai
  • Elisabeth Sadoulet
  • Alain de Janvry
  • George Frisvold

Abstract

The impact of global climate change on developing countries is analyzed using CGE-multimarket models for three archetype economies representing the poor cereal importing nations of Africa, Asia, and Latin America. The objective is to compare the effects of climate change on the macroeconomic performance, sectoral resource allocation, and household welfare across continents. Simulations help identify those underlying structural features of economies which are the primary determinants of differential impacts; these are suggestive of policy instruments to countervail undesirable effects. Results show that all these countries will potentially suffer income and production losses. However, Africa, with its low substitution possibilities between imported and domestic foods, fares worst in terms of income losses and the drop in consumption of low income households. Countervailing policies to mitigate negative effects should focus on integration in the international market and the production of food crops in Africa, and on the production of export crops in Latin America and Asia. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Paul Winters & Rinku Murgai & Elisabeth Sadoulet & Alain de Janvry & George Frisvold, 1998. "Economic and Welfare Impacts of Climate Change on Developing Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(1), pages 1-24, July.
    • Handle: RePEc:kap:enreec:v:12:y:1998:i:1:p:1-24
    DOI: 10.1023/A:1008204419284
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    References listed on IDEAS

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    Cited by:

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    2. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.
    3. World Bank, 2005. "Managing Food Price Risks and Instability in an Environment of Market Liberalization," World Bank Publications - Reports 8264, The World Bank Group.
    4. Agustin L. Arcenas, 2018. "Establishing the Link Between Poverty and Changes in Climatic Conditions in the Philippines," UP School of Economics Discussion Papers 201801, University of the Philippines School of Economics.
    5. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, vol. 5(6), pages 1-24, June.
    6. Simin SEURY, 2009. "Inward Foreign Investment, Corruption and Firm's Ability: Firm-level Evidence from the Transition Economies," EcoMod2009 21500083, EcoMod.
    7. Li, Jennifer Chung-I, 2002. "Including the Feedback of Local Health Improvement in Assessing Costs and Benefits of GHG Reduction," Conference papers 331019, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Bassino, Jean-Pascal & Lagoarde-Segot, Thomas & Woitek, Ulrich, 2020. "The irreversible welfare cost of climate anomalies. Evidence from Japan (1872-1917)," Discussion Paper Series 704, Institute of Economic Research, Hitotsubashi University.
    9. repec:lib:0000of:v:1:y:2015:i:1:p:19-35 is not listed on IDEAS
    10. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Bob & Faggian, Rob, 2017. "The Economic Cost of Climate Change and the Benefits from Investments in Adaptation Options for Sri Lankan Coconut Value Chains," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276938, International European Forum on System Dynamics and Innovation in Food Networks.
    11. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Bob & Faggian, Rob, 2017. "The Economic Cost of Climate Change and the Benefits from Investments in Adaptation Options for Sri Lankan Coconut Value Chains," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2017(1), June.

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