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An Analysis of Adaption Policies to Climate Change: Gdyn-W Model

Author

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  • Muhammad Zeshan

    (Pakistan Institute of Development Economics, Islamabad)

  • Jong-Hwan Ko

    (Pukyong National University, Busan, South Korea)

Abstract

This paper develops a dynamic CGE-Water (Gdyn-W) model to analyse the effectiveness of adaptation policies to climate change. In the model, water is introduced as an explicit primary factor of production used for irrigation purposes. For empirical analysis, we employ the latest GTAP database version 9 focusing on the South Asian countries: Bangladesh, India, Nepal, Pakistan and Sri Lanka. Our simulation results revel that the domestic production in all the countries under analysis decreases after the temperature rises by 1 °C until 2040. However, such production losses can be reduced greatly by the adaptation policy to climate change. The costs associated with such a policy are marginal compared to the overall benefits from such a policy.

Suggested Citation

  • Muhammad Zeshan & Jong-Hwan Ko, 2019. "An Analysis of Adaption Policies to Climate Change: Gdyn-W Model," PIDE-Working Papers 2019:159, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2019:159
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    File URL: https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-159.pdf
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    References listed on IDEAS

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    1. Golub, Alla, 2013. "Analysis of Climate Policies with GDyn-E," Technical Papers 283431, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Buob, Seraina & Stephan, Gunter, 2011. "To mitigate or to adapt: How to confront global climate change," European Journal of Political Economy, Elsevier, vol. 27(1), pages 1-16, March.
    3. Roberto Roson & Martina Sartori, 2016. "Estimation of Climate Change Damage Functions for 140 Regions in the GTAP 9 Database," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(2), pages 78-115, December.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    5. Taheripour, Farzad & Thomas Hertel & Jing Liu, 2013. "Introducing water by river basin into the GTAP-BIO model: GTAP-BIO-W," GTAP Working Papers 4304, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    6. Ianchovichina,Elena & Walmsley,Terrie L. (ed.), 2012. "Dynamic Modeling and Applications for Global Economic Analysis," Cambridge Books, Cambridge University Press, number 9781107011694, January.
    7. Taheripour, Farzad & Hertel, Thomas & Sahin, Sebnem, 2016. "Economic and land use impacts of improving water use efficiency in South Asia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236063, Agricultural and Applied Economics Association.
    8. Alexandra Lesnikowski & James Ford & Robbert Biesbroek & Lea Berrang-Ford & S. Jody Heymann, 2016. "National-level progress on adaptation," Nature Climate Change, Nature, vol. 6(3), pages 261-264, March.
    9. Ianchovichina,Elena & Walmsley,Terrie L. (ed.), 2012. "Dynamic Modeling and Applications for Global Economic Analysis," Cambridge Books, Cambridge University Press, number 9781107002432, January.
    10. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    11. Roger Pielke & Gwyn Prins & Steve Rayner & Daniel Sarewitz, 2007. "Lifting the taboo on adaptation," Nature, Nature, vol. 445(7128), pages 597-598, February.
    12. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Cited by:

    1. Muhammad Zeshan & Muhammad Shakeel, 2023. "Adaptations And Mitigation Policies To Climate Change: A Dynamic Cge-We Model," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(06), pages 2169-2193, December.

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    More about this item

    Keywords

    Water; CGE; Irrigation; Adaptation Policy; Climate Change;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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