Optimal growth with adaptation to climate change

Optimal growth with adaptation to climate change

Many economic sectors, like housing or transportation, are exposed to climate and likely to suffer efficiency losses when climate changes. The global economy is far from being sheltered from climate, these sectors represent a significant fraction of the existing capital stock. Using an optimal growth model with perfect knowledge, we examine the balance between efficiency losses and investment i...

Adaptation to Climate Change

We investigate the effect of climate change on population growth in 18th and 19th century Iceland. We find that annual temperature changes help determine the population growth rate in preindustrial Iceland: a year 1◦C cooler than average drives down population growth rates by 0.57% in each of the next two years, for a total effect of 1.14%. We also find that 18th and 19th century Icelanders ada...

Adaptation to climate change and economic growth in developing countries!

The global climate is changing, and will continue to do so even if greenhouse gas emissions are dramatically curbed. Economies are therefore faced with the challenge of adapting to climate change. This challenge is particularly important in developing countries, which, due to a combination of unfortunate geography and high sensitivity, are most vulnerable to climate change. From a macro-economi...

Mitigation + Adaptation What is the optimal climate change policy mix ?

In dealing with climate change, how much should governments focus their effort on mitigation (emission reduction to prevent climate change) and on adaptation (coping with a changed climate)? Very little research has gone into pinning down which strategy is dynamically optimal under what kind of conditions. This paper contributes to this debate by developing a parsimonious optimal control model ...

Climate Change and Adaptation