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Economy-Wide Estimates of the Implications of Climate Change: Sea Level Rise

Author

Listed:
  • Roberto Roson

    (Fondazione Eni Enrico Mattei, The Abdus Salam International Centre for Theoretical Physics and ca’ Foscari Unversity of Venice)

  • Francesco Bosello

    (Fondazione Eni Enrico Mattei and The Abdus Salam International Centre for Theoretical Physics)

  • Marco Lazzarin

    (Fondazione Eni Enrico Mattei and The Abdus Salam International Centre for Theoretical Physics)

  • Richard S.J. Tol

    (Centre for Marine and Climate Research, Hamburg University, Institute for Environmental Studies, Vrije Universiteit and Center for Integrated Study of the Human Dimensions of Global Change, Carnegie Mellon University)

Abstract

The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. Overall, general equilibrium effects increase the costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions that do a lot of dike building, but utility falls, least in regions that build a lot of dikes and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land.

Suggested Citation

  • 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.
  • Handle: RePEc:fem:femwpa:2004.96
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Impacts of climate change; Sea level rise; Computable general equilibrium;
    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
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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