Estimating a Climate Change Damage Function through General Equilibrium Modeling

Roberto Roson () and Francesco Bosello
Additional contact information
Roberto Roson: Department of Economics, University Of Venice Cà Foscari

No 2007_08, Working Papers from University of Venice "Ca' Foscari", Department of Economics

Abstract: A Climate Change Damage Function (CCDF) is a reduced form relationship linking macroeconomic aggregates (e.g., potential GDP) to climate indicators (e.g., average temperature levels). This function is used in a variety of studies about climate change impacts and policy analysis. However, despite the fact that this function is key in determining results in many integrated assessment models, it is not typically calibrated in a consistent and rigorous way. This paper presents a novel approach, in which several different impacts of climate change are first assessed by means of a full-fledged computable general equilibrium model of the world economy, then results are interpolated to get a simple relationship of the CCDF type. The estimated CCDF is compared with other popular functions used in the literature, to highlight the possible implications associated with the alternative adoption of this functional relationship.

Keywords: Climate Change; Damage Function; Integrated Assessment; General Equilibrium. (search for similar items in EconPapers)
JEL-codes: C68 D58 F18 Q51 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-env
Date: 2007

Downloads: (external link)
http://www.dse.unive.it/fileadmin/templates/dse/wp ... ello_roson_08_07.pdf First version, July 2007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ven:wpaper:2007_08

Access Statistics for this paper

More papers in Working Papers from University of Venice "Ca' Foscari", Department of Economics
Contact information at EDIRC.
Series data maintained by Renato Dalla Venezia ().