Investing to Mitigate and Adapt to Climate Change: A Framework Model

47 Pages Posted: 9 Dec 2016

See all articles by Tony Bonen

Tony Bonen

Labour Market Information Council (LMIC)

Prakash Loungani

International Monetary Fund (IMF)

Willi Semmler

The New School - Department of Economics; Universitaet Bielefeld; IIASA

Sebastian Koch

Goethe University Frankfurt - Department of Accounting and Auditing

Date Written: August 2016

Abstract

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

Bonen, Tony and Loungani, Prakash and Semmler, Willi and Koch, Sebastian, Investing to Mitigate and Adapt to Climate Change: A Framework Model (August 2016). IMF Working Paper No. 16/164. Available at SSRN: https://ssrn.com/abstract=2882601

Tony Bonen (Contact Author)

Labour Market Information Council (LMIC) ( email )

410 Laurier Avenue West
suite 410
Ottawa, Ontario K1R 1B7
Canada

HOME PAGE: http://lmic-cimt.ca/

Prakash Loungani

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-7043 (Phone)
202-623-4740 (Fax)

Willi Semmler

The New School - Department of Economics ( email )

65 Fifth Avenue
New York, NY 10003
United States

HOME PAGE: http://www.newschool.edu/nssr/faculty/?id=4e54-6b79-4e41-3d3d

Universitaet Bielefeld ( email )

Universit├Ątsstra├če 25
Bielefeld, NRW
Germany

IIASA ( email )

Schlossplatz 1
Laxenburg/Austria, A-2361
Austria

Sebastian Koch

Goethe University Frankfurt - Department of Accounting and Auditing ( email )

Theodor-W.-Adorno Platz 4
60323 Frankfurt
Germany

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