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Physical and Economic Consequences of Sea-Level Rise: A Coupled GIS and CGE Analysis Under Uncertainties

Author

Listed:
  • Santosh R. Joshi

    (Centre for Environmental and Resource Economics
    Umeå University)

  • Marc Vielle

    (École Polytechnique Fédérale de Lausanne (EPFL), EPFL ENAC INTER REME)

  • Frédéric Babonneau

    (École Polytechnique Fédérale de Lausanne (EPFL), EPFL ENAC INTER REME
    ORDECSYS SARL)

  • Neil R. Edwards

    (Open University)

  • Philip B. Holden

    (Open University)

Abstract

This paper develops a modelling framework that links GEMINI-E3, a multi-regional, multi-sectoral computable general equilibrium model with a cost-benefit analysis approach at local level using geographical information system tools to assess the physical and economic consequences of sea-level rise (SLR) in the twenty first century. A set of future scenarios is developed spanning the uncertainties related to global warming, the parameters of semi-empirical SLR estimates, and coastal developments (cropland, urban areas and population). The importance of incorporating uncertainties regarding coastal development is highlighted. The simulation results suggest that the potential development of future coastal areas is a greater source of uncertainty than the parameters of SLR itself in terms of the economic consequences of SLR. At global level, the economic impact of SLR could be significant when loss of productive land along with loss of capital and forced displacement of populations are considered. Furthermore, highly urbanised and densely populated coastal areas of South East Asia, Australia and New Zealand are likely to suffer significantly if no protective measures are taken. Hence, it is suggested that coastal areas needs to be protected to ameliorate the overall welfare cost across various regions.

Suggested Citation

  • Santosh R. Joshi & Marc Vielle & Frédéric Babonneau & Neil R. Edwards & Philip B. Holden, 2016. "Physical and Economic Consequences of Sea-Level Rise: A Coupled GIS and CGE Analysis Under Uncertainties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 813-839, December.
    • Handle: RePEc:kap:enreec:v:65:y:2016:i:4:d:10.1007_s10640-015-9927-8
    DOI: 10.1007/s10640-015-9927-8
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    Cited by:

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    3. Camille Gonseth & Philippe Thalmann & Marc Vielle, 2017. "Impacts of Global Warming on Energy Use for Heating and Cooling with Full Rebound Effects in Switzerland," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 153(4), pages 341-369, October.
    4. Johnson, Justin Andrew & Baldos, Uris Lantz & Hertel, Thomas & Nootenboom, Chris & Polasky, Stephen & Roxburgh, Toby, 2020. "Global Futures: Modelling the global economic impacts of environmental change to support policy-making," Technical Papers 323944, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Getachew F. Belete & Alexey Voinov & Iñaki Arto & Kishore Dhavala & Tatyana Bulavskaya & Leila Niamir & Saeed Moghayer & Tatiana Filatova, 2019. "Exploring Low-Carbon Futures: A Web Service Approach to Linking Diverse Climate-Energy-Economy Models," Energies, MDPI, vol. 12(15), pages 1-24, July.

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    More about this item

    Keywords

    Climate change; Sea-level rise; GIS; Computable general equilibrium model; Coastal impacts; Uncertainty; Adaptation;
    All these keywords.

    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
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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