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Investing to Mitigate and Adapt to Climate Change: A Framework Model

Author

Listed:
  • Anthony Bonen
  • Mr. Prakash Loungani
  • Willi Semmler
  • Sebastian Koch

Abstract

We propose a macroeconomic model to assess optimal public policy decisions in the the face of competing funding demands for climate change action versus traditional welfare-enhancing capital investment. How to properly delineate the costs and benefits of traditional versus adaption-focused development remains an open question. The paper places particular emphasis on the changing level of risk and vulnerabilities faced by developing countries as they allocate investment toward growth strategies, adapting to climate change and emissions mitigation.

Suggested Citation

  • Anthony Bonen & Mr. Prakash Loungani & Willi Semmler & Sebastian Koch, 2016. "Investing to Mitigate and Adapt to Climate Change: A Framework Model," IMF Working Papers 2016/164, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2016/164
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    References listed on IDEAS

    as
    1. Agrawala, Shardul & Bosello, Francesco & Carraro, Carlo & de Cian, Enrica & Lanzi, Elisa, 2011. "Adapting to Climate Change: Costs, Benefits, and Modelling Approaches," International Review of Environmental and Resource Economics, now publishers, vol. 5(3), pages 245-284, August.
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    5. Semmler, Willi & Greiner, Alfred & Diallo, Bobo & Rezai, Armon & Rajaram, Anand, 2007. "Fiscal policy, public expenditure composition, and growth theory and empirics," Policy Research Working Paper Series 4405, The World Bank.
    6. Samuel Fankhauser & Richard Tol & DAVID Pearce, 1997. "The Aggregation of Climate Change Damages: a Welfare Theoretic Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(3), pages 249-266, October.
    7. Thierry Bréchet & Natali Hritonenko & Yuri Yatsenko, 2013. "Adaptation and Mitigation in Long-term Climate Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(2), pages 217-243, June.
    8. Michael Flaherty & Arkady Gevorkyan & Siavash Radpour & Willi Semmler, 2016. "Financing Climate Policies Through Climate Bonds," SCEPA working paper series. 2016-03, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    9. Greiner, Alfred & Gruene, Lars & Semmler, Willi, 2014. "Economic growth and the transition from non-renewable to renewable energy," Environment and Development Economics, Cambridge University Press, vol. 19(4), pages 417-439, August.
    10. Anthony Bonen & Willi Semmler & Stephan Klasen, 2014. "Economic Damages from Climate Change: A Review of Modeling Approaches," SCEPA working paper series. 2014-3, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    11. Grüne, Lars & Semmler, Willi & Stieler, Marleen, 2015. "Using nonlinear model predictive control for dynamic decision problems in economics," Journal of Economic Dynamics and Control, Elsevier, vol. 60(C), pages 112-133.
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    13. Niloy Bose & M. Emranul Haque & Denise R. Osborn, 2007. "Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries," Manchester School, University of Manchester, vol. 75(5), pages 533-556, September.
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    Citations

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    Cited by:

    1. Di Bartolomeo, Giovanni & Saltari, Enrico & Semmler, Willi, 2019. "The effects of political short-termism on transitions induced by pollution regulations," EconStor Preprints 200143, ZBW - Leibniz Information Centre for Economics.
    2. Catalano, Michele & Forni, Lorenzo & Pezzolla, Emilia, 2020. "Climate-change adaptation: The role of fiscal policy," Resource and Energy Economics, Elsevier, vol. 59(C).
    3. Stefan Mittnik & Willi Semmler & Alexander Haider, 2020. "Climate Disaster Risks—Empirics and a Multi-Phase Dynamic Model," Econometrics, MDPI, vol. 8(3), pages 1-27, August.
    4. Flaherty, Michael & Gevorkyan, Arkady & Radpour, Siavash & Semmler, Willi, 2017. "Financing climate policies through climate bonds – A three stage model and empirics," Research in International Business and Finance, Elsevier, vol. 42(C), pages 468-479.
    5. Manoj Atolia & Mr. Prakash Loungani & Helmut Maurer & Willi Semmler, 2018. "Optimal Control of a Global Model of Climate Change with Adaptation and Mitigation," IMF Working Papers 2018/270, International Monetary Fund.
    6. Di Bartolomeo Giovanni & Saltari Enrico & Semmler Willi, 2017. "Inattention and pollution regulation policies," wp.comunite 00130, Department of Communication, University of Teramo.
    7. Natali Hritonenko & Victoria Hritonenko & Yuri Yatsenko, 2020. "Games with Adaptation and Mitigation," Games, MDPI, vol. 11(4), pages 1-16, December.

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