Knowing the Damages is not Enough: The General Equilibrium Impacts of Climate Change
- Publisher: Center for Economic Studies and Ifo Institute (CESifo) Munich
O41 | O44 | O13 | O14 | Q54 | Q56 | dual economy | adaptation | multi-sector growth model | general equilibrium | factor income | distribution
We show that economies may exhibit a strong endogenous macroeconomic adaptation response to climate change. If climate change induces a structural change to the more productive sector, economies can benefit from climate change though productivities in both sectors are r...