Investing to Mitigate and Adapt to Climate Change: A Framework Model
47 Pages Posted: 9 Dec 2016
Date Written: August 2016
We propose a macroeconomic model to assess optimal public policy decisions in the face of competing funding demands for climate change action versus traditional welfare-enhancing capital investment. How to properly delineate the costs and benefits of traditional versus adaption-focused development remains an open question. The paper places particular emphasis on the changing level of risk and vulnerabilities faced by developing countries as they allocate investment toward growth strategies, adapting to climate change and emissions mitigation.
Keywords: Climatic changes, Public investment, Government expenditures, Econometric models, Climate Change, Fiscal Policy, Public Capital, Nonlinear Model Predictive Control
JEL Classification: E20, H50, O20, Q50
Suggested Citation: Suggested Citation