Economic and Welfare Impacts of Climate Change on Developing Countries

Environmental and Resource Economics, 1998

Posted: 9 Jan 2019

See all articles by Paul Winters

Paul Winters

International Fund for Agricultural Development (IFAD)

Rinku Murgai

World Bank - Development Research Group (DECRG)

Elisabeth Sadoulet

University of California, Berkeley - The Richard & Rhoda Goldman School of Public Policy

Alain de Janvry

University of California, Berkeley - The Richard & Rhoda Goldman School of Public Policy

George B. Frisvold

University of Arizona - Department of Agricultural and Resource Economics

Date Written: July 1998

Abstract

The impact of global climate change on developing countries is analyzed using CGE-multimarket models for three archetype economies representing the poor cereal importing nations of Africa, Asia, and Latin America. The objective is to compare the effects of climate change on the macroeconomic performance, sectoral resource allocation, and household welfare across continents. Simulations help identify those underlying structural features of economies which are the primary determinants of differential impacts; these are suggestive of policy instruments to countervail undesirable effects. Results show that all these countries will potentially suffer income and production losses. However, Africa, with its low substitution possibilities between imported and domestic foods, fares worst in terms of income losses and the drop in consumption of low income households. Countervailing policies to mitigate negative effects should focus on integration in the international market and the production of food crops in Africa, and on the production of export crops in Latin America and Asia.

Suggested Citation

Winters, Paul and Murgai, Rinku and Sadoulet, Elisabeth and de Janvry, Alain and Frisvold, George B., Economic and Welfare Impacts of Climate Change on Developing Countries (July 1998). Environmental and Resource Economics, 1998, Available at SSRN: https://ssrn.com/abstract=3306700

Paul Winters (Contact Author)

International Fund for Agricultural Development (IFAD) ( email )

Via Paolo di Dono
Rome, 00142
Italy

Rinku Murgai

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Elisabeth Sadoulet

University of California, Berkeley - The Richard & Rhoda Goldman School of Public Policy ( email )

2607 Hearst Avenue
Berkeley, CA 94720-7320
United States

Alain De Janvry

University of California, Berkeley - The Richard & Rhoda Goldman School of Public Policy ( email )

2607 Hearst Avenue
Berkeley, CA 94720-7320
United States

George B. Frisvold

University of Arizona - Department of Agricultural and Resource Economics ( email )

1110 E. North Campus Drive
Economics, Rm. 403E
Tucson, AZ 85721-0023
United States
520-621-6269 (Phone)

HOME PAGE: http://ag.arizona.edu/AREC/dept/faculty/frisvold.h

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