Regional Industries and Environmental Impacts. Long-run Regional Economic Effects of Climate Change: The Case of the Coastal and Estuary Zone of the German Northwest

Wolfram Elsner

Journal of Environmental Planning and Management, 2005, vol. 48, issue 5, 665-690

Abstract: The paper explores the relations of (1) regionalized climate change impulses; (2) their impacts on regional industry sectors; and (3) a regional econometric impact analysis. It develops a methodology by which the impulses of a regional climate change scenario can be transformed into 'primary' impacts on the capital stock and value added of climate-sensitive regional industries. These industries are vulnerable to 'creeping', i.e. continuous, climate change impulses, and they tend to react through 'defensive' investment. In addition, a singular flooding event is simulated for a specific local area and its different capital stocks. The stock damages and value-added losses of both the continuous industrial impacts and the singular flooding are inserted into a regional econometric model. This is sectorally disaggregated in stock, value-added and investment functions. It is also calibrated in the very-long run (through to the year 2040), according to different scenarios. The regional economic 'secondary' effects on the regional GNP are calculated. In addition to the calculation of regional economic primary and secondary impacts, the methodological issue of generating more transparency of the causal chains by use of damage functions, reaction functions, and comparative defensive strategies are discussed.

Date: 2005
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DOI: 10.1080/10350330500181926

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