Development, Climate Change Adaptation, and Maladaptation: Some Econometric Evidence

24 Pages Posted: 19 Jan 2016

See all articles by Francesco Bosello

Francesco Bosello

University of Milan - Department of Economics, Business and Statistics; CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Shouro Dasgupta

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

Date Written: September 2015

Abstract

This paper examines the determinants of climate related disasters and attempts to estimate the presence of adaptive capacity in terms of per capita income and population density elasticities. We find evidence of adaptive capacity in a “weak” form both in terms of income and population density elasticities over our entire sample. That is, damages are in fact increasing with income and population, but less than proportionally. There is also evidence of countries improving their adaptive capacity over the long run, but of maladaptation occurring in the short run. Repeating the analysis splitting the sample by per-capita income levels, we find that higher income countries show adaptive capacity in a “strong form”, i.e. damages decrease with GDP, while lower income countries highlight exactly the opposite behavior. Finally, using Granger causality tests for panel data, we find evidence of increase in GDP per capita Granger causing climate related damages for lower income countries, but not in higher income countries.

Keywords: Climate Change Damages, Adaptation, Panel Granger Causality

JEL Classification: C19, Q54, Q56

Suggested Citation

Bosello, Francesco and Dasgupta, Shouro, Development, Climate Change Adaptation, and Maladaptation: Some Econometric Evidence (September 2015). FEEM Working Paper No. 97.2015, Available at SSRN: https://ssrn.com/abstract=2718007 or http://dx.doi.org/10.2139/ssrn.2718007

Francesco Bosello (Contact Author)

University of Milan - Department of Economics, Business and Statistics

Via Festa del Perdono, 7
Milan, 20122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Shouro Dasgupta

Fondazione Eni Enrico Mattei

Isola di San Giorgio 8
Venezia, VE 30124
Italy

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

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
72
Abstract Views
746
rank
352,475
PlumX Metrics