Economic Damage of Climate Change: How Far is it From the Physical Damage?

Wei, Taoyuan; Aaheim, H. Asbjørn

doi:10.1142/9789811240553_0005

Cited by 2 publications

(2 citation statements)

References 21 publications

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“…However, the literature indicates clearly that the price effects of impacts of climate change are likely to be significant (Wei and Aaheim, 2021; Zhang et al , 2022). At the same time, prices are also a main driver behind autonomous adaptation among people, in businesses and within local administrative institutions.…”

Section: Discussionmentioning

confidence: 99%

“…Impacts of climate change can be represented by assessments of how primary production factors, technologies and preferences are affected (Aaheim et al , 2012; Dellink et al , 2019). In agriculture, for example, changing climate will lead to a change in the productivity of land (Wei and Aaheim, 2021), health effects will have an impact on the productivity of labor (Orlov et al , 2020) and extreme events will cause damages to the capital stock (Carleton and Hsiang, 2016). There may also be direct impacts on the demand for goods and services.…”

Section: Impacts and Adaptation Addressed By Computable General Equil...mentioning

confidence: 99%

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Climate change adaptation based on computable general equilibrium models – a systematic review

Wei

Aaheim

2023

IJCCSM

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Purpose This study aims to identify the current state of the art and the gaps in the application of computable general equilibrium (CGE) models on studying climate change adaptation. Design/methodology/approach A systematic review is conducted to select, classify and analyze relevant studies from two databases of Web of Science and Scopus. Findings Totally, 170 articles based on selected keywords were found from both databases, where 56 articles were duplicates. The authors further excluded 17 articles owing to preliminary exclusion criteria. Hence, 97 papers were selected for full-text review and more detailed assessment. Only a few of the studies explicitly have addressed the role of autonomous adaptation embodied in the CGE models. Over one-third of the studies have focused on planned adaptation without explicitly mentioning autonomous adaptation. Agriculture was the most addressed sector, and country-level models are the most adopted. Only one article has focused on South America. Research limitations/implications The review suggests that autonomous adaptation embodied in CGE models was not well addressed in the literature. As the limited studies have shown that autonomous adaptation can dramatically mitigate direct climate change impacts, further studies are needed to examine the importance of the autonomous adaptation for better understanding of climate change impacts. Furthermore, CGE models can provide a joint assessment considering both mitigation and adaptation strategies and management measures as such models have also been widely used to address effects of mitigation measures in the literature. Originality/value The studies on climate change adaptation based on CGE models have been systematically reviewed, and state-of-the-art knowledge and research gaps have been identified.

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Section: Discussionmentioning

confidence: 99%

Section: Impacts and Adaptation Addressed By Computable General Equil...mentioning

confidence: 99%

Climate change adaptation based on computable general equilibrium models – a systematic review

Wei

Aaheim

2023

IJCCSM

Self Cite

View full text Add to dashboard Cite

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Climate change and the European banking sector: the effect of green technology adaptation and human capital

Afzal,

Hasnaoui,

Firdousi

et al. 2024

RAF

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Purpose Climate change poses effect on banking sector’s risks and profitability through adaptation of green technology. This study aims to incorporates green technology adaptation in three sectors: green banking, green entrepreneurial innovation (EI) and green human resource (HR), in a model of bank’s performance. And determines the impact of climate change on bank risk and profitability. Design/methodology/approach An assessment of profitability and risk profile of commercial banks is done for 27 European countries for 2013–2022, employing a two-step difference system-generalized method of moments estimation technique with a moderate effect of climate change by including interaction between climate change and green technology adaptation. Findings The results indicate that green banking increases profitability, reduces credit risk and increases liquidity risk. The results also show that green human resource increases profitability and becomes a source of credit and liquidity risks for the banks. Green EI increases credit risk and liquidity risk, while the effects of green EI on profitability vary with the use of two proxies: Green patents increase profitability and environment, social and corporate governance (ESG) scores decrease profitability. Practical implications Supportive government initiatives, including subsidies and tax rebates to green borrowers, may take the burden of green transition off the banking sector. Originality/value This paper observes the impact of green technology adaptation in three sectors: banks, EI and HR, moderated by climate change, adding substantially to the existing literature in conceptual framework and methodology.

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Economic Damage of Climate Change: How Far is it From the Physical Damage?

Cited by 2 publications

References 21 publications

Climate change adaptation based on computable general equilibrium models – a systematic review

Climate change adaptation based on computable general equilibrium models – a systematic review

Climate change and the European banking sector: the effect of green technology adaptation and human capital

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