Territorial Economic Impacts of Climate Anomalies in Brazil

Eduardo Haddad and Alexandre Porsse

No 2012_20, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: This paper evaluates the systemic impact of climate variations in a regional perspective using an interregional CGE model integrated with a physical model estimated for agriculture in order to catch the effects of climate change. The climate anomalies are estimated for 2005 and represent deviations over the historic trend. The results of this paper suggest that the economic costs of climate anomalies can be significantly underestimated if only partial equilibrium effects (direct impact/damage) are accounted for. The results show that a general equilibrium approach can provide a better comprehension about the systemic impact of climate anomalies, suggesting the economic costs are higher than those that would be observed in a partial equilibrium analysis. In addition, intersectoral and interregional linkages as well price effects seem to be important transmission channels in the context of systemic impact of climate anomalies.

Keywords: climate anomalies; systemic impact; interregional CGE analysis (search for similar items in EconPapers)
JEL-codes: Q54 R13 (search for similar items in EconPapers)
Date: 2012-09-15
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: TERRITORIAL ECONOMIC IMPACTS OF CLIMATEANOMALIES IN BRAZIL (2014)
Working Paper: Territorial Economic Impacts of Climate Anomalies in Brazil (2013)
Working Paper: Territorial Economic Impacts of Climate Anomalies in Brazil (2012)
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