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Territorial Economic Impacts of Climate Anomalies in Brazil

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  • Eduardo A. Haddad
  • Alexandre A. Porsse, Paula C. Pereda

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

  • Eduardo A. Haddad & Alexandre A. Porsse, Paula C. Pereda, 2012. "Territorial Economic Impacts of Climate Anomalies in Brazil," Working Papers, Department of Economics 2012_20, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2012wpecon20
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    Cited by:

    1. Elizabeth L. Roos & Heinrich R. Bohlmann & Jan H. van Heerden & Nicholas Kilimani, 2016. "Counting the cost of drought induced productivity losses in an agro-based economy: The case of Uganda," Working Papers 616, Economic Research Southern Africa.
    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

    climate anomalies; systemic impact; interregional CGE analysis;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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