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Economy-wide impacts of climate change: a joint analysis for sea level rise and tourism

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  • Andrea Bigano
  • Francesco Bosello
  • Roberto Roson
  • Richard Tol
Abstract
While climate change impacts on human life have well defined and different origins, the interactions among the diverse impacts are not yet fully understood. Their final effects, however, especially those involving social-economic responses, are likely to play an important role. This paper is one of the first attempts to disentangle and highlight the role of these interactions. It focuses on the economic assessment of two specific climate change impacts: sea-level rise and changes in tourism flows. By using a Computable General Equilibrium (CGE) model the two impacts categories are first analysed separately and then jointly. Considered separately, in 2050, the forecasted 25 cm. of sea level rise imply a GDP loss ranging from (-) 0.1% in South East Asia to almost no loss in Canada, while redistribution of tourism flows - which in terms of arrivals favours Western Europe, Japan, Korea and Canada and penalises all the other world regions - triggers GDP losses ranging from (-) 0.5% in Small Island States to (-) 0.0004% in Canada. GDP gainers are Australia, New Zealand, Western Europe, Middle East and South Asia.
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Suggested Citation

  • Andrea Bigano & Francesco Bosello & Roberto Roson & Richard Tol, 2008. "Economy-wide impacts of climate change: a joint analysis for sea level rise and tourism," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(8), pages 765-791, October.
    • Handle: RePEc:spr:masfgc:v:13:y:2008:i:8:p:765-791
    DOI: 10.1007/s11027-007-9139-9
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    More about this item

    Keywords

    Climate change; Sea level rise; Tourism; Computable general equilibrium models; C68; D58; Q25;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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