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Global Climate Change and the Resurgence of Tropical Disease: An Economic Approach

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  • Gollin, Douglas

    (Tufts University)

  • Zimmermann, Christian

    (Federal Reserve Bank of St. Louis)

Abstract

We study the impact of global climate change on the prevalence of tropical diseases using a heterogeneous agent dynamic general equilibrium model. In our framework, households can take actions (e.g., purchasing bednets or other goods) that provide partial protection from disease. However, these actions are costly and households face borrowing constraints. Parameterizing the model, we explore the impact of a worldwide temperature increase of 3° C. We find that the impact on disease prevalence and especially output should be modest and can be mitigated by improvements in protection efficacy.

Suggested Citation

  • Gollin, Douglas & Zimmermann, Christian, 2010. "Global Climate Change and the Resurgence of Tropical Disease: An Economic Approach," IZA Discussion Papers 5042, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5042
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    References listed on IDEAS

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    1. Benjamin F. Jones & Benjamin A. Olken, 2010. "Climate Shocks and Exports," American Economic Review, American Economic Association, vol. 100(2), pages 454-459, May.
    2. Douglas Gollin & Christian Zimmermann, 2005. "Malaria," 2005 Meeting Papers 561, Society for Economic Dynamics.
    3. Douglas Gollin & Christian Zimmermann, 2007. "Malaria: Disease Impacts and Long-Run Income Differences," Working papers 2007-30, University of Connecticut, Department of Economics, revised Apr 2010.
    4. Masters, William A & McMillan, Margaret S, 2001. "Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-186, September.
    5. David Domeij & Jonathan Heathcote, 2004. "On The Distributional Effects Of Reducing Capital Taxes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(2), pages 523-554, May.
    6. Hoyt Bleakley, 2010. "Malaria Eradication in the Americas: A Retrospective Analysis of Childhood Exposure," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 1-45, April.
    7. Hoyt Bleakley, 2003. "Disease and Development: Evidence from the American South," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 376-386, 04/05.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chen, Yu-Fu & Funke, Michael, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," SIRE Discussion Papers 2010-48, Scottish Institute for Research in Economics (SIRE).

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    More about this item

    Keywords

    incomplete markets; DSGE models; climate change; tropical diseases;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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