The adaptive investment effect: Evidence from Chinese provinces

Kamiar Mohaddes and Rhys Williams

Economics Letters, 2020, vol. 193, issue C

Abstract: This paper investigates the “adaptive investment effect”, a redirection of investment towards adaptive capital in order to mitigate the negative effects of climate change. We find that the impact of investment on economic growth is reduced by between 27% and 37% in Chinese provinces investing more in adaptive capital. This implies that the benefits from mitigation policies are greater than existing studies suggest.

Keywords: Climate change; Adaptation; Investment; China (search for similar items in EconPapers)
JEL-codes: C33 O40 O53 Q51 Q54 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520302160

DOI: 10.1016/j.econlet.2020.109332

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