International Trade and the Adaptation to Climate Change and Variability


Stephan, Gunter ; Schenker, Oliver


[img]
Preview
PDF
dp12008.pdf - Published

Download (310kB)

URL: https://ub-madoc.bib.uni-mannheim.de/31385
URN: urn:nbn:de:bsz:180-madoc-313852
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 12-008
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: F18 , Q56 , Q54,
Subject headings (SWD): Klimaveränderung , Wirtschaftliche Anpassung , Außenwirtschaft , Internationale Finanzierung , Nord-Süd-Beziehungen , Theorie
Keywords (English): funding of adaptation , climate change , international trade
Abstract: This paper has three messages mainly, which are observed in a simple model of climate change, international trade and regional adaptation. First, trade can be viewed as a kind of adaptation to climate change and variability, as trade can help to reduce direct impacts of global climate change on a region’s welfare. In particular, the less affected and the richer nations are, the more they can profit from moderating the impacts of global climate change through trade. Second, if regions are rich enough to adapt optimally to climate change, the resulting allocation of adaptation measures is Pareto-efficient. In this case funding of adaptation, which is an element of international climate policy, does not make sense from an economic perspective. Third, since the regions of the South typically lack the resources for adapting optimally to climate change, because of terms of trade effects, it might be in the selfinterest of the industrialized nations to fund adaptation in the developing part of the world. However, providing financial assistance for adaptation can be Pareto-improving only, if the benefits of funding, i.e., damages, which are moderated through adaptation, are big enough, and hence, if the recipient’s own expenditure for adaptation is low. If not, the paradoxical effect of recipient immiserization through tied transfers can occur.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Stephan, Gunter ; Schenker, Oliver (2012) International Trade and the Adaptation to Climate Change and Variability. Open Access ZEW Discussion Papers Mannheim 12-008 [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item