Terms-of-trade and the funding of adaptation to climate change and variability: An empirical analysis
This paper analyses the interplay between international trade, regional adaptation and North-to-South transfers for funding adaptation within the framework of a dynamic computable gen-eral equilibrium model, where impacts of climate change depend on changes in precipitation and temperature. If all regions, even the least developed ones, own the necessary resources for adapting optimally to climate change and variability, by mid-century less than 10% of the regions' GDP would be invested for avoiding almost 40% of climate change damages. This has measurable effects on the regions' competitiveness as well as on the terms-of-trade. If, however, the developing world does not own sufficient resources for adapting optimally to climate change, as is to expected, funding of adaptation can make sense from an economic perspective. In particular the Hicks-Kaldor criterion is fulfilled as aggregated welfare gains at least compensate the costs of providing financial assistance for adaptation.
|Date of creation:||2012|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agrawala, Shardul & Bosello, Francesco & Carraro, Carlo & de Cian, Enrica & Lanzi, Elisa, 2011. "Adapting to Climate Change: Costs, Benefits, and Modelling Approaches," International Review of Environmental and Resource Economics, now publishers, vol. 5(3), pages 245-284, August.
- 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.
- Francesco Bosello & Carlo Carraro & Enrica De Cian, 2010.
"Climate Policy and the Optimal Balance between Mitigation, Adaptation and Unavoided Damage,"
2010.32, Fondazione Eni Enrico Mattei.
- Carlo Carraro & Francesco Bosello & Enrica De Cian, 2010. "Climate Policy and the Optimal Balance between Mitigation, Adaptation and Unavoided Damage," Working Papers 2010_09, Department of Economics, University of Venice "Ca' Foscari".
- Kelly C. de Bruin & Rob B. Dellink & Richard S.J. Tol, 2007.
"AD-DICE: an implementation of adaptation in the DICE model,"
FNU-126, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2007.
- Kelly C. de Bruin & Rob B. Dellink & Richard S.J. Tol, 2007. "AD-DICE: An Implementation of Adaptation in the DICE Mode," Working Papers 2007.51, Fondazione Eni Enrico Mattei.
- Schenker, Oliver, 2010. "Transporting goods and damages. The role of trade on the distribution of climate change costs," MPRA Paper 25350, University Library of Munich, Germany.
- Juhwan Lee & Steven Gryze & Johan Six, 2011. "Effect of climate change on field crop production in California’s Central Valley," Climatic Change, Springer, vol. 109(1), pages 335-353, December.
- Roxana Julia & Faye Duchin, 2005. "World Trade as the Adjustment Mechanism of Agriculture to Climate Change," Rensselaer Working Papers in Economics 0507, Rensselaer Polytechnic Institute, Department of Economics. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12056. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.