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Economic Modelling of Climate Impacts: a Partial Review

Author

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  • J-C- Ciscar
  • B. Saveyn
  • D. Van Regemorter

Abstract

This paper reviews the economic modelling of climate change impacts, using integrated assessment models (IAMs). IAMs consider the most relevant interactions and feedback mechanisms of the human-climate system and integrate various relevant academic disciplines, ranging from climate modeling to economics. Our paper distinguishes two approaches: First, the reduced-form approach considers the direct link between climate change and economic impacts. That approach is highly aggregated or top-down as it does not consider in detail the cause-effect mechanisms between climate change and specific impacts. Second, the bottom-up approach models the specific framework and channels between climate change and its impacts on a specific area. Finally, the paper discusses ways to further improve the bottom-up methodology.

Suggested Citation

  • J-C- Ciscar & B. Saveyn & D. Van Regemorter, 2012. "Economic Modelling of Climate Impacts: a Partial Review," Review of Business and Economic Literature, Intersentia, vol. 57(2), pages 144-157, June.
    • Handle: RePEc:sen:rebelj:v:57:i:2:y:2012:p:144-157
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    Cited by:

    1. Lamperti, F. & Dosi, G. & Napoletano, M. & Roventini, A. & Sapio, A., 2018. "Faraway, So Close: Coupled Climate and Economic Dynamics in an Agent-based Integrated Assessment Model," Ecological Economics, Elsevier, vol. 150(C), pages 315-339.
    2. Francesco Lamperti & Andrea Roventini, 2022. "Beyond climate economics orthodoxy: impacts and policies in the agent-based integrated-assessment DSK model," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 19(3), pages 357-380, December.
    3. CISCAR MARTINEZ Juan Carlos & FEYEN Luc & SORIA RAMIREZ Antonio & LAVALLE Carlo & PERRY Miles & RAES Frank & NEMRY Francoise & DEMIREL Hande & RÓZSAI Máté & DOSIO Alessandro & DONATELLI Marcello & SRI, 2014. "Climate Impacts in Europe. The JRC PESETA II Project," JRC Research Reports JRC87011, Joint Research Centre.
      • Ciscar, Juan-Carlos & Feyen, Luc & Soria, Antonio & Lavalle, Carlo & Raes, Frank & Perry, Miles & Nemry, Françoise & Demirel, Hande & Rozsai, Máté & Dosio, Alessandro & Donatelli, Marcello & Srivastav, 2014. "Climate Impacts in Europe - The JRC PESETA II Project," MPRA Paper 55725, University Library of Munich, Germany.

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