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Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model

  • Fabio Eboli

    (Fondazione Eni Enrico Mattei)

  • Ramiro Parrado

    (Fondazione Eni Enrico Mattei and Ca’ Foscari University)

  • Roberto Roson

    (Ca’ Foscari University, Venice)

Human-generated greenhouse gases depend on the level of economic activity. Therefore, most climate change studies are based on models and scenarios of economic growth. Economic growth itself, however, is likely to be affected by climate change impacts. These impacts affect the economy in multiple and complex ways: changes in productivity, resource endowments, production and consumption patterns. We use a new dynamic, multi-regional Computable General Equilibrium (CGE) model of the world economy to answer the following questions: Will climate change impacts significantly affect growth and wealth distribution in the world? Should forecasts of human-induced greenhouse gases emissions be revised, once climate change impacts are taken into account? We found that, even though economic growth and emission paths do not change significantly at the global level, relevant differences exist at the regional and sectoral level. In particular, developing countries appear to suffer the most from climate change impacts.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.43.

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Date of creation: Jun 2009
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Handle: RePEc:fem:femwpa:2009.43
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  1. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Andrea Bigano & Maria Berrittella & Roberto Roson & Richard S.J. Tol, 2004. "A General Equilibrium Analysis of Climate Change Impacts on Tourism," Working Papers 2004.127, Fondazione Eni Enrico Mattei.
  3. Francesco Bosello & Roberto Roson & Richard S.J. Tol, 2005. "Economy-Wide Estimates of the Implications of Climate Change: Human Health," Working Papers 2005.97, Fondazione Eni Enrico Mattei.
  4. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
  5. Enrica De Cian & Elisa Lanzi & Roberto Roson, 2007. "The Impact of Temperature Change on Energy Demand: A Dynamic Panel Analysis," Working Papers 2007.46, Fondazione Eni Enrico Mattei.
  6. Francesco Bosello & Roberto Roson & Richard Tol, 2007. "Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(3), pages 549-571, July.
  7. W. J. McKibbin & P. J. Wilcoxen, . "The Theoretical and Empirical Structure of the G-Cubed Model," Discussion Papers 118, Brookings Institution International Economics.
  8. Francesco Bosello & Andrea Bigano & Roberto Roson & Richard S.J. Tol, 2006. "Economy-Wide Estimates of the Implications of Climate Change: A Joint Analysis for Sea Level Rise and Tourism," Working Papers 2006.135, Fondazione Eni Enrico Mattei.
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