Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model

26 Pages Posted: 8 Aug 2009 Last revised: 19 Oct 2014

See all articles by Ramiro Parrado

Ramiro Parrado

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici; Fondazione Eni Enrico Mattei (FEEM); Ca Foscari University of Venice - SMCC Phd

Fabio Eboli

Fondazione Eni Enrico Mattei (FEEM); CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Roberto Roson

Ca Foscari University of Venice - Dipartimento di Economia; Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy; Loyola Andalucia University

Multiple version iconThere are 2 versions of this paper

Date Written: August 4, 2009

Abstract

Human-generated greenhouse gases depend on the level of economic activity. Therefore, most climate change studies are based on models and scenarios of economic growth. Economic growth itself, however, is likely to be affected by climate change impacts. These impacts affect the economy in multiple and complex ways: changes in productivity, resource endowments, production and consumption patterns. We use a new dynamic, multi-regional Computable General Equilibrium (CGE) model of the world economy to answer the following questions: Will climate change impacts significantly affect growth and wealth distribution in the world? Should forecasts of human-induced greenhouse gases emissions be revised, once climate change impacts are taken into account? We found that, even though economic growth and emission paths do not change significantly at the global level, relevant differences exist at the regional and sectoral level. In particular, developing countries appear to suffer the most from climate change impacts.

Keywords: Computable General Equilibrium Models, Climate Change, Economic Growth

JEL Classification: C68, E27, O12, Q54, Q56

Suggested Citation

Parrado, Ramiro and Eboli, Fabio and Roson, Roberto, Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model (August 4, 2009). FEEM Working Paper No. 43.2009; CMCC Research Paper No. 64. Available at SSRN: https://ssrn.com/abstract=1443885 or http://dx.doi.org/10.2139/ssrn.1443885

Ramiro Parrado

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Fondazione Eni Enrico Mattei (FEEM) ( email )

Isola di San Giorgio Maggiore
Venezia, VE 30124
Italy

Ca Foscari University of Venice - SMCC Phd ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Fabio Eboli (Contact Author)

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Roberto Roson

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy
+39 041 2349147 (Phone)
+39 041 2349176 (Fax)

HOME PAGE: http://venus.unive.it/roson

Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy ( email )

viale Filippetti, 9
Milan, 20122
Italy

Loyola Andalucia University ( email )

Escritor Castilla Aguayo no. 4
Cordoba, CORDOBA 14004
Spain

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