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Environmental and Resource Economics

, Volume 12, Issue 1, pp 1–24 | Cite as

Economic and Welfare Impacts of Climate Change on Developing Countries

  • Paul Winters
  • Rinku Murgai
  • Elisabeth Sadoulet
  • Alain de Janvry
  • George Frisvold
Article

Abstract

The impact of global climate change on developing countries is analyzed using CGE-multimarket models for three archetype economies representing the poor cereal importing nations of Africa, Asia, and Latin America. The objective is to compare the effects of climate change on the macroeconomic performance, sectoral resource allocation, and household welfare across continents. Simulations help identify those underlying structural features of economies which are the primary determinants of differential impacts; these are suggestive of policy instruments to countervail undesirable effects. Results show that all these countries will potentially suffer income and production losses. However, Africa, with its low substitution possibilities between imported and domestic foods, fares worst in terms of income losses and the drop in consumption of low income households. Countervailing policies to mitigate negative effects should focus on integration in the international market and the production of food crops in Africa, and on the production of export crops in Latin America and Asia.

climate change CGE models comparative impacts poverty 

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Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Paul Winters
    • 1
  • Rinku Murgai
    • 1
  • Elisabeth Sadoulet
    • 1
  • Alain de Janvry
    • 1
  • George Frisvold
    • 2
  1. 1.University of California at BerkeleyUSA
  2. 2.University of CaliforniaBerkeleyUSA)

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