Year
2012
Volume
57
Number
2
Page
144
Language
English
Court
Reference
J-C. CISCAR e.a., “Economic Modelling of Climate Impacts: a Partial Review”, RBE 2012, nr. 2, 144-156
Recapitulation
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.
