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Transporting goods and damages. The role of trade on the distribution of climate change costs

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  • Schenker, Oliver

Abstract

Impacts from climate change vary signicantly across world regions. Whereas regions in tropical and subtropical areas will sufer severely from the eects of climate change, are the impact estimates for regions in more northern latitudes relative moderate. But regions can not be considered as independent from each others exposure. In this paper we examine the spillover of climate change impacts between regions through international trade within a climate sensitive, dynamic CGE model with international trade. Under the emission scenario SRES A1B we observe at the end of the twenty-first century regional losses between 2 and 13 % GDP relative to a scenario without climate change. By means of a decomposition method we show that such a spillover of damages through international trade has a signicant influence, positive or negative, on the total costs of climate change for a region. For regions with low exposure to climate change and high adaptive capacities, spillover effects are responsible for a third of total costs from climate change.

Suggested Citation

  • Schenker, Oliver, 2010. "Transporting goods and damages. The role of trade on the distribution of climate change costs," MPRA Paper 25350, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25350
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    References listed on IDEAS

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    Cited by:

    1. Schenker, Oliver & Stephan, Gunter, 2012. "Terms-of-trade and the funding of adaptation to climate change and variability: An empirical analysis," ZEW Discussion Papers 12-056, ZEW - Leibniz Centre for European Economic Research.
    2. Schenker, Oliver & Bucher, Raphael, 2010. "On interactions of optimal climate policy and international trade. An assessment of border carbon measures," MPRA Paper 25820, University Library of Munich, Germany.
    3. Schenker, Oliver & Stephan, Gunter, 2014. "Give and take: How the funding of adaptation to climate change can improve the donor's terms-of-trade," Ecological Economics, Elsevier, vol. 106(C), pages 44-55.

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    More about this item

    Keywords

    Climate Change; Multi-regional Dynamic CGE Model; International Trade; Decomposition of General Equilibrium Effects.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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