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Economic impacts of climate change

Author Info

  • Richard S. J. Tol

    ()

    (Department of Economics, University of Sussex, UK
    Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands
    Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands
    Tinbergen Institute, Amsterdam, The Netherlands)

Abstract

Climate change will probably have a limited impact on the economy and human welfare in the 21st century. The initial impacts of climate change may well be positive. In the long run, the negative impacts dominate the positive ones. Negative impacts will be substantially greater in poorer, hotter, and lower-lying countries. Poverty reduction complements greenhouse gas emissions reduction as a means to reduce climate change impacts. Climate change may affect the growth rate of the economy and may trap more people in poverty but quantification is difficult. The optimal carbon tax in the near term is somewhere between a few tens and a few hundreds of dollars per tonne of carbon.

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Paper provided by Department of Economics, University of Sussex in its series Working Paper Series with number 7515.

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Date of creation: May 2015
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Handle: RePEc:sus:susewp:7515
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Keywords: Impacts of climate change; economic development; social cost of carbon;

Find related papers by JEL classification:

  • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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  1. A second correction in the Journal of Economic Perspectives
    by John Whitehead in Environmental Economics on 2015-07-22 16:27:55
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Cited by:

  1. Richard S.J. Tol, 2016. "Distributional Implications of Geoengineering," Working Paper Series 8316, Department of Economics, University of Sussex.
  2. Richard S. J. Tol, 2016. "The structure of the climate debate," Papers 1608.05597, arXiv.org.
  3. -, 2011. "An assessment of the economic impact Of climate change on the health sector in Saint Lucia," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38597, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  4. Richard S.J. Tol, 2016. "Dangerous Interference With The Climate System: An Economic Assessment," Working Paper Series 10016, Department of Economics, University of Sussex.

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