GTAP Resources: Resource Display
| GTAP Resource #6539 |
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"The Economic Effects of Climate Change in Dynamic Spatial Equilibrium" by Rudik, Ivan, Gary Lyn, Weiliang Tan and Ariel Ortiz-Bobea Abstract We develop a dynamic-spatial equilibrium model to quantify the economic effects of climate change with a focus on the United States. We find that climate change reduces US welfare by 4% and global welfare by over 20%. Market-based adaptation through trade and labor reallocation increases US welfare, but with substantial spatial heterogeneity. Adaptation through labor reallocation and trade are complementary: together they boost welfare by 50% more than their individual effects. We additionally develop a new dynamic envelope theorem method for measuring welfare impacts in reduced form and to validate our quantitative model. We find that welfare distributions from our two approaches are consistent, indicating that our quantitative model captures the first-order factors for measuring the distributional impacts of climate change. The level and distribution of the economic impacts of climate change depends the sectoral and spatial structure of the economy, and the extent to which different markets can adapt. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Climate impacts - Trade and the environment - Economic geography - New quantitative trade models - North America |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  Paper (21.8 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
