Economic activity and climate change (original) (raw)
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Economic Activity and Climate Change in a Structural Framework: A First Approach
The considerable increases in greenhouse gases emissions and the subsequent climate changes are directly associated with the current rates of economic growth. As a result, the increasing environmental problems should result in an effort to accurately measure and control climate changes. In the present paper, we propose a theoretical inter-industry model for analyzing how economic activity, by industrial sector, affects the climate. We believe that the proposed methodology could be utilized for the feedback of the policy formulation procedure and could provide a vehicle for expanding conventional climate change analysis in economics.
The Impact of Economic Activity on Global Warming
Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019), 2020
Global problems are the problems that affect the entire population of the Earth and represent advantages and perils to the whole human society. The topicality of the research resides in solving the global problems of humanity in different fields, but all of them test the maturity of the society by changing the mentality and finding common solutions for tackling them. The methods of research are based on the directives regarding the global problems related to the gaps in the economic development in different regions of the Earth, the problem of the environment, the malnutrition, the resources, the energies, the migration, etc. along with these, the following methods were used: the method of comparison, induction, deduction, and forecasting, etc. Changes in people's way of life are often linked to natural cataclysms, climate change, natural disasters (floods, volcanic eruptions), war, political, religious, etc. Currently, climate change implies that the processes and phenomena will be repeated, so that a part of the population will be affected, being forced to migrate or being subject to the action of harmful factors. The displacement of a large number of populations will lead to wars, social and economic problems (food, access to drinking water), politics, and dissatisfaction with other groups. The purpose of the research is to study the impact of human activity and to determine possible ways of overcoming the problems that affect the environment. Research denotes that there are chances to tackle these challenges but it requires the involvement of all government structures and people. The authors' research indicates that a global strategy is needed to reduce the negative effect of human activity on Earth. It is necessary to more actively implement IT, ICT, intelligent devices and technologies in the development of the "green economy".
Integration of Climate Change into Economic Theory: Reviewing the Global Process
With climate change appearing on the horizon of economic theory and analytical research, it becomes imperative that the links are traced to the origin of the connection between the climate change and economics. Climate change traditionally, is a subject for meteorologists, ecologist and marine biologists. When economist and financial experts, start debating climate change, it means that the subject matter now includes costs and finance; income distribution; and factors of production. Energy resource and fossil fuels are the focus for this discussion as these are linked to: CO2 emissions and other Green House Gases (GHG) emissions and the abatement costs of these emissions.
Climate Change and the World Economy
2014
By elaborating this article, we want to analyse the current situation, but also anticipating the actions that will result from climate change and its impact on global economy. Firstly, it is necessary to clarify the terms of specialty, a brief introduction to climate change, but also the presentation of legislative concepts at national, European and international level. Secondly, we shall briefly outline some possible scenarios on global climate change, but also various strategies and policies that can help achieve the expected climate change outcomes. Further, present and future situations will be presented by geographic regions, but also differentiated according to the large economic production flows, and finally, the main effects of climate change on the world economy will be identified.
Consequences of Climate Change Damages for Economic Growth
OECD Economics Department Working Papers, 2014
English -Or. English 31 2 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).
Journal of Risk and Financial Management
Climate change has become an increasingly intense global phenomenon in recent years. A great number of researchers support the idea that climate change is strongly connected to some environmental hazards, and specifically, those correlated to extreme weather events. Following the Paris Agreement, and due to the increased concern regarding climate change impacts, several indices have been established. The Climate Change Performance Index (CCPI) includes 59 countries and the EU, which cumulatively emit 92% of global greenhouse gases (GHGs), while the Global Climate Risk Index (CRI) analyzes to what extend countries have been affected by impacts of weather-related loss events. Both indices provide annual scores to each country and rank them based on those scores indicating the existing environmental situation. Our main purpose is to examine whether there is an interconnection between those two indices as well as testify whether economic growth is a great contributor to country’s enviro...
On climate change and economic analysis
Climatic Change, 1987
Climatic change and its societal impacts have been a topic of considerable concern over the last decade. Economic analysis would seem to have much to contribute to society's understanding of the importance of this issue, yet the contributions of prior analyses have been limited. Consideration from a decisionanalytic perspective suggests that more useful insights could be gained by evaluating the effects of a changing (rather than changed) climate and the potential adaptations of society to that changing climate. Linking physical and economic models of differing levels of aggregation can be useful in analyzing a changing climate.
WP / 19 / 215 Long-Term Macroeconomic Effects of Climate Change : A Cross-Country Analysis
2019
We study the long-term impact of climate change on economic activity across countries, using a stochastic growth model where labor productivity is affected by country-specific climate variables—defined as deviations of temperature and precipitation from their historical norms. Using a panel data set of 174 countries over the years 1960 to 2014, we find that per-capita real output growth is adversely affected by persistent changes in the temperature above or below its historical norm, but we do not obtain any statistically significant effects for changes in precipitation. Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04°C per year, in the absence of mitigation policies, reduces world real GDP per capita by more than 7 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01°C per annum, reduces the loss substantially to about 1 percent. These effects vary significantly ac...
Econometric analysis of global climate change
Environmental Modelling and Software, 1999
This paper reports on research that applies econometric time series methods to the analysis of global climate change. The aim of this research was to test hypotheses concerning the causes of the historically observed rise in global temperatures. Longer term applications include quantification of the contribution of different forcing variables to historic warming and use of the model as a module in integrated assessment. Research to date has comprised three stages. In the first stage we used the concept of Granger causality and differences between the temperature record in the northern and southern hemispheres to investigate the causes of temperature increase. In the second stage we tested various global change time series for the presence of stochastic trends. We found that most series contain a stochastic trend with the greenhouse gas series containing I(2) stochastic trends. In the third stage we developed a structural time series to investigate some of the hypotheses suggested by the earlier stages and further tested for the presence of an I(2) trend in hemispheric temperature series. We found that the two temperature series share a common I(2) stochastic trend that may have its source in radiative forcing due to greenhouse gases. There is a second non-stationary component that appears only in the northern hemisphere and appears to be related to radiative forcing due to anthropogenic sulphur emissions.
Long-Term Macroeconomic Effects of Climate Change: A Cross-Country Analysis
SSRN Electronic Journal
We study the long-term impact of climate change on economic activity across countries, using a stochastic growth model where labour productivity is affected by country-specific climate variables. defined as deviations of temperature and precipitation from their historical norms. Using a panel data set of 174 countries over the years 1960 to 2014, we find that per-capita real output growth is adversely affected by persistent changes in the temperature above or below its historical norm, but we do not obtain any statistically significant effects for changes in precipitation. Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04°C per year, in the absence of mitigation policies, reduces world real GDP per capita by 7.22 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01°C per annum, reduces the loss substantially to 1.07 percent. These effects vary significantly across countries. We also provide supplementary evidence using data on a sample of 48 U.S. states between 1963 and 2016, and show that climate change has a long-lasting adverse impact on real output in various states and economic sectors, and on labour productivity and employment.