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Climate change, agriculture and economic effects on different regions of Brazil

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  • Ferreira Filho, Joaquim Bento de Souza
  • Moraes, Gustavo Inácio de

Abstract

In this paper we assess the potential economic effects of climate change on Brazilian agriculture scenarios in different regions in a general equilibrium framework, using a detailed regional economic database for the year 2005. Two different climate change impact scenarios are simulated. This paper extends the Brazilian literature in three different ways: by considering detailed shocks by product and region; by highlighting the connections between the potential impacts of climate change on agriculture and the labor market, with an inter-regional focus; and by specifying the links between climate change forecasts for agriculture and household expenditures. Results show that climate change impacts on Brazilian agriculture would have a relatively small economic effect on the Brazilian economy in aggregate terms, but with severe consequences at the regional level, making a strong case for losses that would be concentrated in the poorest regions and for the poorest workers and households in those regions.

Suggested Citation

  • Ferreira Filho, Joaquim Bento de Souza & Moraes, Gustavo Inácio de, 2015. "Climate change, agriculture and economic effects on different regions of Brazil," Environment and Development Economics, Cambridge University Press, vol. 20(1), pages 37-56, February.
    • Handle: RePEc:cup:endeec:v:20:y:2015:i:01:p:37-56_00
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    Cited by:

    1. Mercure, J.-F. & Paim, M.A. & Bocquillon, P. & Lindner, S. & Salas, P. & Martinelli, P. & Berchin, I.I. & de Andrade Guerra, J.B.S.O & Derani, C. & de Albuquerque Junior, C.L. & Ribeiro, J.M.P. & Knob, 2019. "System complexity and policy integration challenges: The Brazilian Energy- Water-Food Nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 230-243.

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