Investing to Mitigate and Adapt to Climate Change: A Framework Model

Anthony Bonen, Prakash Loungani, Willi Semmler and Sebastian Koch

No 2016/164, IMF Working Papers from International Monetary Fund

Abstract: We propose a macroeconomic model to assess optimal public policy decisions in the the face of competing funding demands for climate change action versus traditional welfare-enhancing capital investment. How to properly delineate the costs and benefits of traditional versus adaption-focused development remains an open question. The paper places particular emphasis on the changing level of risk and vulnerabilities faced by developing countries as they allocate investment toward growth strategies, adapting to climate change and emissions mitigation.

Keywords: WP; greenhouse gas; economic development; Climate Change; Fiscal Policy; Public Capital; Nonlinear Model Predictive Control; climate change investment policy; mitigation effort; adaptation policy option; climate change policy approach; no-policy-action scenario; mitigation policy funding; policy implementation framework; climate change impact literature; stopping climate change; climate change damage; implementation framework; Greenhouse gas emissions; Non-renewable resources; Climate policy; Global (search for similar items in EconPapers)
Pages: 46
Date: 2016-08-05
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Citations: View citations in EconPapers (9)

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