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Modelling the economic impact of global warming in a general equilibrium framework

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  • Kurtze, Christiane
  • Springer, Katrin

Abstract

The issue of global warming has become a major topic in the international environmental debate. Alternative climate policy measures can be evaluated with the help of a simulation model that integrates economic and natural science considerations. A fully integrated assessment of the two-way relationship between the world economy and the climate system requires the incorporation of the repercussions of climate change on economic processes into the analysis. This paper seeks to review the contributions of the economic literature dealing with the modelling of climate change impacts. We look at the structure, assumptions, and results of impact studies to illustrate how climate change impacts can be incorporated into Computable General Equilibrium Models (CGEs). As a point of reference a generic general equilibrium model is established and extended to incorporate climate change impacts on the economy.

Suggested Citation

  • Kurtze, Christiane & Springer, Katrin, 1999. "Modelling the economic impact of global warming in a general equilibrium framework," Kiel Working Papers 922, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:922
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    Cited by:

    1. Klepper, Gernot & Springer, Katrin, 2000. "Benchmarking the future: a dynamic, multi-regional, multi-sectoral trade model for the analysis of climate policies," Kiel Working Papers 976, Kiel Institute for the World Economy (IfW Kiel).
    2. Springer, Katrin, 1999. "Climate policy and trade: Dynamics and the steady-state assumption in a multi-regional framework," Kiel Working Papers 952, Kiel Institute for the World Economy (IfW Kiel).
    3. 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 Kiel).

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    More about this item

    Keywords

    Climate Change; Impact Modelling; Damage Function; Computable General Equilibrium Model; Integrated Assessment Framework;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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