Nature Loss and Climate Change: The Twin-Crises Multiplier

Stefano Giglio, Theresa Kuchler, Johannes Stroebel and Olivier Wang

No 33361, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the economic effects of the interaction of nature loss and climate change in a model that incorporates important aspects of both processes. We capture the distinct ways in which they affect economic activity—with nature constituting a key factor of production and climate change destroying parts of output—but also the ways in which they interact: climate change causes nature loss, and nature provides both a carbon sink and adaptation tools to reduce climate damages. Our analysis of these feedback loops reveals a novel amplification channel—the Twin-Crises Multiplier—that systematically affects optimal climate and nature conservation policies.

JEL-codes: G0 Q2 Q20 Q3 Q38 Q5 Q50 (search for similar items in EconPapers)
Date: 2025-01
New Economics Papers: this item is included in nep-agr and nep-env
Note: AP CF EEE EFG ME PE
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published as Stefano Giglio & Theresa Kuchler & Johannes Stroebel & Olivier Wang, 2025. "Nature Loss and Climate Change: The Twin-Crises Multiplier," AEA Papers and Proceedings, vol 115, pages 409-414.

Downloads: (external link)
http://www.nber.org/papers/w33361.pdf (application/pdf)

Related works:
Journal Article: Nature Loss and Climate Change: The Twin-Crises Multiplier (2025)
Working Paper: Nature Loss and Climate Change: The Twin-Crises Multiplier (2025)
Working Paper: Nature Loss and Climate Change: The Twin-Crises Multiplier (2025)
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:33361

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w33361

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().