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Dynamic Modeling, Empirical Macroeconomics, and Finance pp 121–136Cite as

Modeling Climate Change Effects on Renewable and Non-Renewable Resources

Abstract

This paper models climate change effects differentiating across primary commodities based on their exhaustibility factor. There is a direct pass-through to futures prices, but the impact differs across diverse commodity groups. This paper develops a theoretical model simulating dynamic consumption paths of renewable and non-renewable resources. Dynamic paths are calculated applying the Non-linear Model Predictive Control (NMPC) methodology. Current analysis draws a clear connection between intensifying impacts of climate change, commodity futures price volatility, rising urban-dependency pressures and the renewable and non-renewable resources production and consumption balance among advanced and emerging economies. Accumulated evidence suggests probable higher volatility in commodity prices in the near term, directly affecting small and large economies across all regions.

Keywords

  • Climate change
  • Futures volatility
  • Primary commodities
  • Renewable and non-renewable resources
  • Non-linear model predictive control (NMPC)
  • Urban dependency

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Author information

Authors and Affiliations

  1. The Peter J. Tobin College of Business, St. John’s University, New York, NY, USA

    Aleksandr V. Gevorkyan

  2. New School for Social Research, The New School, New York, NY, USA

    Arkady Gevorkyan

Authors
  1. Aleksandr V. Gevorkyan
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  2. Arkady Gevorkyan
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Corresponding author

Correspondence to Aleksandr V. Gevorkyan .

Editor information

Editors and Affiliations

  1. Department of Business, The New York City College of Technology The City University of New York, Brooklyn, New York, USA

    Lucas Bernard

  2. Department of Social Science, The New York City College of Technology The City University of New York, Brooklyn, New York, USA

    Unurjargal Nyambuu

Appendix

Appendix

See Table 1.

Table 1 Country group code and name
Full size table

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Gevorkyan, A.V., Gevorkyan, A. (2016). Modeling Climate Change Effects on Renewable and Non-Renewable Resources. In: Bernard, L., Nyambuu, U. (eds) Dynamic Modeling, Empirical Macroeconomics, and Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-39887-7_5

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