Economics at your fingertips  

Climate Change Impacts and Limited Market-driven Adaptation

Francesco Bosello and Ramiro Parrado ()

Review of Environment, Energy and Economics - Re3, 2014

Abstract: This article addresses one specific criticism that can be raised against economic climate change impact assessments conducted with Computable General Equilibrium (CGE) models: that of overly optimistic assumptions about markets’ ability to react to climate change induced shocks, i.e. market-driven adaptation. These models indeed usually assume frictionless and instantaneous adjustments to a new equilibrium. We demonstrate that these frictions could increase climate change costs from 0.64% to 0.87% of Gross World Product (GWP).

Keywords: Climate Change Costs; Adaptation; Computable General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: C68 Q54 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)

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:

Access Statistics for this article

More articles in Review of Environment, Energy and Economics - Re3 from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by barbara racah ().

Page updated 2020-03-29
Handle: RePEc:fem:femre3:2014.09-04