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Territorial Economic Impacts of Climate Anomalies in Brazil

Author

Listed:
  • Haddad, Eduardo

    (Departamento de Economia, Universidade de São Paulo)

  • Porsse, Alexandre
  • Pereda, Paula

    (Departamento de Economia, Universidade de São Paulo)

Abstract

This paper evaluates the systemic impact of climate variations in a regional perspective using an interregional CGE model integrated with a physical model estimated for agriculture in order to catch the effects of climate change. The climate anomalies are estimated for 2005 and represent deviations over the historic trend. The results of this paper suggest that the economic costs of climate anomalies can be significantly underestimated if only partial equilibrium effects (direct impact/damage) are accounted for. The results show that a general equilibrium approach can provide a better comprehension about the systemic impact of climate anomalies, suggesting the economic costs are higher than those that would be observed in a partial equilibrium analysis. In addition, intersectoral and interregional linkages as well price effects seem to be important transmission channels in the context of systemic impact of climate anomalies.

Suggested Citation

  • Haddad, Eduardo & Porsse, Alexandre & Pereda, Paula, 2012. "Territorial Economic Impacts of Climate Anomalies in Brazil," TD NEREUS 8-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2012_008
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    Cited by:

    1. Nicholas Kilimani & Jan van Heerden & Heinrich Bohlmann & Louise Roos, 2016. "Counting the Cost of Drought Induced Productivity Losses in an Agro-Based Economy: The Case of Uganda," Working Papers 201649, University of Pretoria, Department of Economics.
    2. Denisard Alves & Paula Pereda, 2019. "Climate and Weather Impacts on Agriculture: The Case of Brazil," Working Papers, Department of Economics 2019_23, University of São Paulo (FEA-USP).
    3. Delazeri, Linda Márcia Mendes & Cunha, Dênis Antônio da & Couto-Santos, Fabiana Rita, 2018. "Climate change and urbanization: evidence from the Semi-Arid region of Brazil," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 12(2), pages 129-154.

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    More about this item

    Keywords

    interregional CGE model; climate change; impact assessment;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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