Climatic Change

, Volume 45, Issue 3–4, pp 553–569 | Cite as

Country-Specific Market Impacts of Climate Change

  • Robert Mendelsohn
  • Wendy Morrison
  • Michael E. Schlesinger
  • Natalia G. Andronova


We develop a new climate-impact model, theGlobal Impact Model (GIM), which combines futurescenarios, detailed spatial simulations by generalcirculation models (GCMs), sectoral features,climate-response functions, and adaptation to generatecountry-specific impacts by market sector. Estimatesare made for three future scenarios, two GCMs, andtwo climate-response functions – a reduced-form modeland a cross-sectional model. Combining empiricallybased response functions, sectoral data by country,and careful climate forecasts gives analysts a morepowerful tool for estimating market impacts. GIMpredicts that country specific results vary, implyingthat research in this area is likely to bepolicy-relevant.


Climate Change Response Function Specific Result Future Scenario Sectoral Data 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Alcamo, J. (ed.): 1994, Image 2.0: Integrated Modeling of Global Climate Change, Kluwer Academic Publishers, Dordrecht.Google Scholar
  2. Bruce, J., Lee, H., and Haites, E. (eds.): 1996, Climate Change 1995: Economic and Social Dimensions of Climate Change, IPCC Report, Cambridge University Press, Cambridge, p. 446.Google Scholar
  3. Cline, W.: 1992, The Economics of Global Warming, Institute for International Economics, Washington, D.C., p. 399.Google Scholar
  4. Fankhauser, S.: 1995, Valuing Climate Change: The Economics of the Greenhouse, Earthscan, London.Google Scholar
  5. Hope, C., Anderson, J., and Wenman, P.: 1993, ‘Policy Analysis of the Greenhouse Effect: An Application of the PAGE Model’, Energy Pol. 21, 327–338.Google Scholar
  6. Houghton, J. T., Meira Filho, L. G., Bruce, J., Lee, H., Callander, B. A., Haites, E., Harris, N., and Maskell, K. (eds.): 1994, Climate Change 1994: Radiative Forcing of Climate Change and an Evaluation of the IPCC IS92 Emission Scenarios, Cambridge University Press, Cambridge, p. 339.Google Scholar
  7. Houghton, J. T., Meira Filho, L. G., Callander, B. A., Harris, N., Kattenberg, A., and Maskell, K. (eds.): 1996, Climate Change 1995: The Science of Climate Change, Cambridge University Press, Cambridge, p. 572.Google Scholar
  8. Kumar, K. and Parikh, J.: 1998, ‘Climate Change Impacts on Indian Agriculture: The Ricardian Approach’, in Dinar, A., Mendelsohn, R., Evenson, R., Parikh, J., Sanghi, A., Kumar, K., McKinsey, J., and Lonergon, S. (eds.), Meauring the Impact of Climate Change on Indian Agriculture, World Bank Technical Paper No. 402, Washington, D.C. pp. 141–184.Google Scholar
  9. Manne, A., Mendelsohn, R., and Richels, R.: 1993, ‘MERGE: A Model for Evaluating Regional and Global Effects of GHG Reduction Policies’, Energy Pol. 23, 17–34.Google Scholar
  10. Mendelsohn, R. and Neumann, J. (eds.): 1998, The Economic Impact of Climate Change on the U.S. Economy, Cambridge University Press, Cambridge, p. 331.Google Scholar
  11. Mendelsohn, R. and Schlesinger, M. E.: 1999, Climate-Response Functions, Ambio, in press.Google Scholar
  12. Mendelsohn, R. and Sohngen, B.: 1996, Timber Values and Climate, Yale FES, New Haven, CT.Google Scholar
  13. Mendelsohn, R., Nordhaus, W., and Shaw, D.: 1994, ‘The Impact of Global Warming on Agriculture: A Ricardian Analysis’, Amer. Econ. Rev. 84, 753–771.Google Scholar
  14. Morrison, W. and Mendelsohn, R.: 1998, ‘Measuring the Impact of Climate on Commercial and Residential Energy Expenditures’, in Mendelsohn, R. and Neumann, J. (eds.), The Economic Impact of Climate Change on the U.S. Economy, Cambridge University Press, Cambridge, U.K.Google Scholar
  15. Nordhaus, W.: 1991, ‘To Slow or Not to Slow: The Economics of the Greenhouse Effect’, Econ. J. 101, 920–937.Google Scholar
  16. Nordhaus, W.: 1994, Managing the Global Commons: The Economics of Climate Change, MIT Press, Cambridge, MA.Google Scholar
  17. Prentice, C., Cramer, W., Harrison, S., Leemans, R., Monserud, R., and Solomon, A.: 1992, ‘A Global Biome Model Based on Plant Physiology and Dominance, Soil Properties and Climate’, J. Biogeogr. 19, 117–134.Google Scholar
  18. Sanghi, A.: 1998, The Climate Sensitivity of Brazilian and Indian Agriculture, Ph.D. Dissertation, University of Chicago, Chicago, IL.Google Scholar
  19. Sanghi, A., Mendelsohn, R., and Dinar, A.: 1998, ‘The Climate Sensitivity of Indian Agriculture’, in Dinar, A., Mendelsohn, R., Evenson, R., Parikh, J., Sanghi, A., Kumar, K., McKinsey, J., and Lonergon, S. (eds.), Measuring the Impact of Climate Change on Indian Agriculture,World Bank Technical Paper No. 402, Washington, D.C. pp. 69–140.Google Scholar
  20. Schlesinger, M. E. and Andronova, N. G.: 1995, CO 2 -Induced Equilibrium Surface-Air Temperature and Precipitation-Rate Changes and Variability by Country, Simulated by an Atmospheric General Circulation/Mixed-Layer Ocean Model, and Observed Surface-Air Temperature and Precipitation Rate by Country, Urbana, IL, p. 68.Google Scholar
  21. Schlesinger, M. E. and Verbitsky, M.: 1996, ‘Simulation of Glacial Onset with a Coupled Atmospheric General Circulation/Mixed-Layer Ocean-Ice-Sheet/Asthenosphere Model’, Palaeoclim.-Data Model. 2, 179–201.Google Scholar
  22. Schlesinger, M. E., Andronova, N. G., Entwistle, B., Ghanem, A., Ramankutty, N., Wang, W., and Yang, F.: 1997a, ‘Modeling and Simulation of Climate and Climate Change, Past and Present Variability of the Solar-Terrestrial System: Measurements, Data Analysis and Theoretical Models’, in Proceedings of the International School of Physics ‘Enrico Fermi’, 25 June-5 July 1996, Varrena, Italy.Google Scholar
  23. Schlesinger, M. E., Andronova, N., Ghanem, A., Malyshev, S., Reichler, T., Rozanov, E., Wang, W., and Yang, F.: 1997b, Geographical Scenarios of Greenhouse-Gas and Anthropogenic-Sulfate-Aerosol Induced Climate Changes, Climate Research Group, Department of Atmospheric Sciences, University of Illinois at Urbana-Champaign, Urbana, IL, p. 86.Google Scholar
  24. Titus, J. G.: 1992, ‘The Cost of Climate Change to the United States’ in Majumdar, S. K., Kalkstein, L. S., Yarnal, B., Miller, E. W., and Rosenfeld, L. M. (eds.), Global Climate Change: Implications, Challenges, and Mitigation Measures, Pennsylvania Academy of Sciences, Easton, PA.Google Scholar
  25. Tol, R. S. J.: 1995, ‘The Damages Costs of Climate Change: Towards More Comprehensive Calculations’, Environ. Resour. Econ. 5, 353–374.Google Scholar
  26. Watson, R., Zinyowera, M., Moss, R., and Dokken, D. (eds.): 1996, Climate Change 1995: Impacts, Adaptations, and Mitigation of Climate Change: Science-Technical Analyses, Cambridge University Press, Cambridge, p. 879.Google Scholar

Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Robert Mendelsohn
    • 1
  • Wendy Morrison
    • 2
  • Michael E. Schlesinger
    • 3
  • Natalia G. Andronova
    • 3
  1. 1.Yale FESNew HavenU.S.A.
  2. 2.Middlebury CollegeMiddleburyU.S.A.
  3. 3.University of Illinois at Urbana-ChampaignUrbanaU.S.A.

Personalised recommendations