Economy-Wide Estimates of the Implications of Climate Change: Sea Level Rise

Roberto Roson, Francesco Bosello, Marco Lazzarin and Richard Tol
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Marco Lazzarin: Fondazione Eni Enrico Mattei and The Abdus Salam International Centre for Theoretical Physics

No 2004.96, Working Papers from Fondazione Eni Enrico Mattei

Abstract: The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. Overall, general equilibrium effects increase the costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions that do a lot of dike building, but utility falls, least in regions that build a lot of dikes and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land.

Keywords: Impacts of climate change; Sea level rise; Computable general equilibrium (search for similar items in EconPapers)
JEL-codes: C68 D58 Q25 (search for similar items in EconPapers)
Date: 2004-06
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise (2007)
Working Paper: ECONOMY-WIDE ESTIMATES OF THE IMPLICATIONS OF CLIMATE CHANGE: SEA LEVEL RISE (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2004.96

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