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Climate uncertainty and economic development: evaluating the case of Mozambique to 2050

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  • Channing Arndt
  • James Thurlow

Abstract

We apply a probabilistic approach to the evaluation of climate change impacts in Mozambique. We pass a distribution of climate shocks through a series of structural biophysical models. The resulting joint distributions of biophysical outcomes are then imposed on a dynamic economywide model. This framework produces distributions of economic impacts of climate change thus identifying an explicit range of potential economic outcomes and associating probability levels with given sets of outcomes. For example, we find that the economy of Mozambique may be up to 13 % smaller in 2050 compared with a fictional no climate change scenario (and assuming global policy fails to constrain emissions growth). The probability of gross domestic product (GDP) declines of greater than 10 % is relatively small at 2.5 %. These large declines are principally the result of dramatic reductions in flood return periods. To 2050, about 70 % of future climates result in GDP losses of between zero and five percent. In about 9 % of cases, climate change shocks result in higher GDP outcomes. We conclude that, relative to current practice, this structural probabilistic approach provides (i) significantly more information to decision-makers, (ii) more detailed insight into the importance of various impact channels, and (iii) a more holistic and comprehensive approach for evaluating adaptation options. Copyright UNU-WIDER 2015

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  • Channing Arndt & James Thurlow, 2015. "Climate uncertainty and economic development: evaluating the case of Mozambique to 2050," Climatic Change, Springer, vol. 130(1), pages 63-75, May.
  • Handle: RePEc:spr:climat:v:130:y:2015:i:1:p:63-75
    DOI: 10.1007/s10584-014-1294-x
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    References listed on IDEAS

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    1. Paul Chinowsky & Channing Arndt, 2012. "Climate Change and Roads: A Dynamic Stressor–Response Model," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 448-462, August.
    2. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
    3. Arndt, Channing & Strzepeck, Kenneth & Tarp, Finn & Thurlow, James & Fant, Charles & Wright, Len, 2010. "Adapting to Climate Change An Integrated Biophysical and Economic Assessment for Mozambique," WIDER Working Paper Series 101, World Institute for Development Economic Research (UNU-WIDER).
    4. Benson, C. & Clay, E., 1998. "The Impact of Drought on Sub-Saharan African Economies. A Preliminary Examination," Papers 401, World Bank - Technical Papers.
    5. Channing Arndt & James Thurlow, 2015. "Climate uncertainty and economic development: evaluating the case of Mozambique to 2050," Climatic Change, Springer, vol. 130(1), pages 63-75, May.
    6. repec:unu:wpaper:wp2012-65 is not listed on IDEAS
    7. Channing Arndt & Paul Chinowsky & Kenneth Strzepek & James Thurlow, 2012. "Climate Change, Growth and Infrastructure Investment: The Case of Mozambique," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 463-475, August.
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    Cited by:

    1. Channing Arndt & Paul Chinowsky & Charles Fant & Sergey Paltsev & C. Adam Schlosser & Kenneth Strzepek & Finn Tarp & James Thurlow, 2019. "Climate change and developing country growth: the cases of Malawi, Mozambique, and Zambia," Climatic Change, Springer, vol. 154(3), pages 335-349, June.
    2. Elshennawy, Abeer & Robinson, Sherman & Willenbockel, Dirk, 2016. "Climate change and economic growth: An intertemporal general equilibrium analysis for Egypt," Economic Modelling, Elsevier, vol. 52(PB), pages 681-689.
    3. Channing Arndt & Paul Chinowsky & Charles Fant & Yohannes Gebretsadik & James E. Neumann & Sergey Paltsev & C. Adam Schlosser & Kenneth Strzepek & Finn Tarp & James Thurlow, 2015. "Climate change and developing country interests: Cases from the Zambezi River Basin," WIDER Working Paper Series 116, World Institute for Development Economic Research (UNU-WIDER).
    4. Channing Arndt & Paul S. Chinowsky & Charles Fant & Yohannes Gebretsadik & James E. Neumann & Sergey Paltsev & C. Adam Schlosser & Kenneth Strzepek & Finn Tarp & James Thurlow, 2015. "Climate change and developing country interests: Cases from the Zambezi River Basin," WIDER Working Paper Series wp-2015-116, World Institute for Development Economic Research (UNU-WIDER).
    5. Rodrigues, Joao & Thurlow, James & Landman, Willem & Ringler, Claudia & Robertson, Richard D. & Zhu, Tingju, 2016. "The economic value of seasonal forecasts stochastic economywide analysis for East Africa:," IFPRI discussion papers 1546, International Food Policy Research Institute (IFPRI).
    6. Siddig, Khalid & Stepanyan, Davit & Wiebelt, Manfred & Grethe, Harald & Zhu, Tingju, 2020. "Climate change and agriculture in the Sudan: Impact pathways beyond changes in mean rainfall and temperature," Ecological Economics, Elsevier, vol. 169(C).
    7. Salvucci, Vincenzo & Santos, Ricardo, 2020. "Vulnerability to Natural Shocks: Assessing the Short-Term Impact on Consumption and Poverty of the 2015 Flood in Mozambique," Ecological Economics, Elsevier, vol. 176(C).

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