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Climate Change and Economic Growth: Impacts and Interactions

Author

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  • Dominique van der Mensbrugghe

    () (DECPG, The World Bank, Washington)

Abstract

An integrated assessment model (ENVISAGE), including a CGE-based economic module and a climate module, is used to assess the effects of a variety of economic impacts induced by climate change. These impacts include: sea level rise, variations in crop yields, water availability, human health, tourism, energy demand. Two scenarios are compared: a baseline growth path, disregarding any climate change effect, and a counterfactual case, accounting for the impacts. The model assesses the overall magnitude of the impacts, their regional distribution, and the contribution of each specific impact to the overall variation of income and welfare. Results (e.g., on real GDP) show that climate change impacts are substantial, especially for developing countries and in the long run.

Suggested Citation

  • Dominique van der Mensbrugghe, 2010. "Climate Change and Economic Growth: Impacts and Interactions," Working Papers 2010_07, Department of Economics, University of Venice "Ca' Foscari".
  • Handle: RePEc:ven:wpaper:2010_07
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    References listed on IDEAS

    as
    1. Enrica De Cian & Elisa Lanzi & Roberto Roson, 2007. "The Impact of Temperature Change on Energy Demand: A Dynamic Panel Analysis," Working Papers 2007.46, Fondazione Eni Enrico Mattei.
    2. Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
    3. Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(05), pages 515-533, October.
    4. Maureen T. Rimmer & Alan A. Powell, 1992. "An Implicitly Directly Additive Demand System: Estimates for Australia," Centre of Policy Studies/IMPACT Centre Working Papers op-73, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Bosello, Francesco & Roson, Roberto & Tol, Richard S.J., 2006. "Economy-wide estimates of the implications of climate change: Human health," Ecological Economics, Elsevier, vol. 58(3), pages 579-591, June.
    6. Francesco Bosello & Roberto Roson & Richard Tol, 2007. "Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 549-571, July.
    7. Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2004. "The Effects Of Climate Change On International Tourism," Working Papers FNU-36, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2004.
    8. Deke, Oliver & Hooss, Kurt Georg & Kasten, Christiane & Klepper, Gernot & Springer, Katrin, 2001. "Economic impact of climate change: simulations with a regionalized climate-economy model," Kiel Working Papers 1065, Kiel Institute for the World Economy (IfW).
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    More about this item

    Keywords

    Climate Change; Integrated Assessment; Dynamic General Equilibrium.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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