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Climate change and economic growth: impacts and interactions

Roberto Roson () and Dominique van der Mensbrugghe ()

International Journal of Sustainable Economy, 2012, vol. 4, issue 3, 270-285

Abstract: An integrated assessment model (ENVISAGE), including a CGE-based economic module and a climate module, is used to assess the effects of a variety of economic impacts induced by climate change. These impacts include: sea level rise, variations in crop yields, water availability, human health, tourism, energy demand. Two scenarios are compared: a baseline growth path, disregarding any climate change effect, and a counterfactual case, accounting for the impacts. The model assesses the overall magnitude of the impacts, their regional distribution, and the contribution of each specific impact to the overall variation of income and welfare. Results (e.g., on real GDP) show that climate change impacts are substantial, especially for developing countries and in the long run, so that mitigation/adaptation policies are needed to make economic growth sustainable.

Keywords: climate change; integrated assessment models; sustainability; dynamic general equilibrium; ENVISAGE model; sustainable economic growth; sustainable economy; developing countries; income; welfare; sea level rise; crop yields; water availability; human health; tourism; energy demand. (search for similar items in EconPapers)
Date: 2012
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Working Paper: Climate Change and Economic Growth: Impacts and Interactions (2010) Downloads
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Handle: RePEc:ids:ijsuse:v:4:y:2012:i:3:p:270-285