Estimating a Climate Change Damage Function through General Equilibrium Modeling

A Climate Change Damage Function (CCDF) is a reduced form relationship linking macroeconomic aggregates (e.g., potential GDP) to climate indicators (e.g., average temperature levels). This function is used in a variety of studies about climate change impacts and policy analysis. However, despite the fact that this function is key in determining results in many integrated assessment models, it is not typically calibrated in a consistent and rigorous way. This paper presents a novel approach, in which several different impacts of climate change are first assessed by means of a full-fledged computable general equilibrium model of the world economy, then results are interpolated to get a simple relationship of the CCDF type. The estimated CCDF is compared with other popular functions used in the literature, to highlight the possible implications associated with the alternative adoption of this functional relationship.Climate Change, Damage Function, Integrated Assessment, General Equilibrium.

The Economic Impact Water Taxes: a Computable General Equilibrium Analysis with an International Data Set

Water is scarce in many countries. One instrument to improve the allocation of a scarce resource is (efficient) pricing or taxation. However, water is implicitly traded on international markets, particularly through food and textiles, so that impacts of water taxes cannot be studied in isolation, but require an analysis of international trade implications. We include water as a production factor in a multi-region, multi-sector computable general equilibrium model (GTAP), to assess a series of water tax policies. We find that water taxes reduce water use, and lead to shifts in production, consumption, and international trade patterns. Countries that do not levy water taxes are nonetheless affected by other countries' taxes. Taxes on agricultural water use drive most of the economic and welfare impacts. Reductions in water use (welfare losses) are less (more) than linear in the price of water. The results are sensitive to the assumed ability to substitute other production factors for water. A water tax on production would have different effects on water use, production and trade patterns, and the size and distribution of welfare losses than would a water tax on final consumption.Computable General Equilibrium, Virtual Water, Water Allocation, Water Pricing, Water Scarcity

Economy-Wide Impacts of Climate Change: A Joint Analysis for Sea Level Rise and Tourism

While climate change impacts on human life have well defined and different origins, the interactions among the diverse impacts are not yet fully understood. Their final effects, however, especially those involving social-economic responses, are likely to play an important role. This paper is one of the first attempts to disentangle and highlight the role of these interactions. It focuses on the economic assessment of two specific climate change impacts: sea-level rise and changes in tourism flows. By using a Computable General Equilibrium (CGE) model the two impacts categories are first analysed separately and then jointly. Considered separately, in 2050, the forecasted 25 cm. of sea level rise imply a GDP loss ranging from (-) 0.1% in South East Asia to almost no loss in Canada, while redistribution of tourism flows - which in terms of arrivals favours Western Europe, Japan, Korea and Canada and penalises all the other world regions - triggers GDP losses ranging from (-) 0.5% in Small Island States to (-) 0.0004% in Canada. GDP gainers are Australia, New Zealand, Western Europe, Middle East and South Asia.Climate change, Sea level rise, Tourism, Computable General Equilibrium Models

Probing Non-Standard Couplings of Neutrinos at the Borexino Detector

The present experimental status does not exclude weak-strength non-standard interactions of neutrinos with electrons. These interactions can be revealed in solar neutrino experiments. Our discussion covers several aspects related to this issue. First, we perform an analysis of the Super Kamiokande and SNO data to investigate their sensitivity to such interactions. In particular, we show that the \nu_e oscillation into sterile neutrinos can be still allowed if \nu_e has extra interactions of the proper strength. Second, we suggest that the Borexino detector can provide good signatures for these non-standard interactions. Indeed, in Borexino the shape of the recoil electron spectrum from the \nu e \to \nu e scattering essentially does not depend on the solar neutrino conversion details, since most of the signal comes from the mono-energetic ^7Be neutrinos. Hence, the partial conversion of solar \nu_e into a a nearly equal mixture of \nu_\mu and \nu_\tau, as is indicated by the atmospheric neutrino data, offers the chance to test extra interactions of \nu_\tau, or of \nu_e itself.Comment: 17 LaTeX pages, 15 postscript figures, uses epsfig.sty. More extended discussion about the spectral deformation for both Super-Kamiokande and Borexino; new figures are adde

Climate Change Impacts and Adaptation Strategies In Italy. An Economic Assessment

In this paper, the economic value of the impacts of climate change is assessed for different Italian economic sectors and regions. Sectoral and regional impacts are then aggregated to provide a macroeconomic estimate of variations in GDP induced by climate change in the next decades. Autonomous adaptation induced by changes in relative prices and in stocks of natural and economic resources is fully taken into account. The model also considers international trade effects. Results show that in Italy aggregate GDP losses induced by climate change are likely to be small. However, some economic sectors (e.g. tourism) and the alpine regions will suffer significant economic damages.Impacts, Climate Change, Adaptation, GDP Losses, Tourism

Sarcoma risk and dioxin emissions from incinerators and industrial plants: a population-based case-control study (Italy)

This is an Open Access article distributed under the terms of the Creative Commons Attribution Licens

The Economic Impact of the South-North Water Transfer Project in China: A Computable General Equilibrium Analysis

Water resources are unevenly spread in China. Especially the basins of the Yellow, Hui and Hai rivers in the North are rather dry. To increase the supply of water in these basins, the South-to-North Water Transfer project (SNWT) was launched. Using a computable general equilibrium model this study estimates the impact of the project on the economy of China and the rest of the world. We contrast three alternative groups of scenarios. All are directly concerned with the South-to-North water transfer project to increase water supply. In the first group of scenarios additional supply implies productivity gains. We call it the “non-market” solution. The second group of scenarios is called “market solution”. The market price for water adjusts such that supply and demand are equated again. In the third group of simulations the economic implications of China’s capital investment in infrastructure for the water South-North water transfer project is analyzed. Finally, the investment is combined with the increased capacity of water. If an increase in water supply in China leads to an increase in productivity of their water-intensive goods and services (non-market solution) this would result in a huge positive welfare effect from increased production and export. The effect on China’s welfare would still be positive, if a market for water would exist (market solution), but the world as a whole would lose. The negative effect for the rest of the world is largely explained by a deterioration of its terms-of-trade. Well functioning water markets in China are unlikely to exist.Computable General Equilibrium, South-North Water Transfer Project, Water Policy, Water Scarcity

THE ECONOMIC IMPACT OF RESTRICTED WATER SUPPLY: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS

Water problems are typically studied at the level of the river catchment. About 70% of all water is used for agriculture, and agricultural products are traded internationally. A full understanding of water use is impossible without understanding the international market for food and related products, such as textiles. The water embedded in commodities is called virtual water. Based on a general equilibrium model, we offer a method for investigating the role of water resources and water scarcity in the context of international trade. We run five alternative scenarios, analysing the effects of water scarcity due to reduced availability of groundwater. This can be a consequence of physical constraints, and of policies curbing water demand. Four scenarios are based on a “market solution”, where water owners can capitalize their water rent or taxes are recycled. In the fifth “non-market” scenario, this is not the case; supply restrictions imply productivity losses. Restrictions in water supply would shift trade patterns of agriculture and virtual water. These shifts are larger if the restriction is larger, and if the use of water in production is more rigid. Welfare losses are substantially larger in the non-market situation. Water-constrained agricultural producers lose, but unconstrained agricultural produces gain; industry gains as well. As a result, there are regional winners and losers from water supply constraints. Because of the current distortions of agricultural markets, water supply constraints could improve allocative efficiency; this welfare gain may more than offset the welfare losses due to the resource constraint.Computable General Equilibrium, Sustainable Water Supply, Virtual Water, Water Scarcity

Designing and implementing a multi-scalar approach to Maritime Spatial Planning: The case study of Italy

The Italian coastal and marine space includes areas with remarkable differences in terms of oceanographic characteristics, maritime uses, natural habitats, species distribution, landscape and cultural heritage. In Italy, coastal and marine management competencies are shared among national, regional, and for some aspects even local authorities. This geographic heterogeneity and governance complexity required the adoption of a multiscalar approach to Maritime Spatial Planning (MSP). Such an approach aims at implementing decision-making and spatial planning at multiple and nested scales. In the case of Italy, the multi-scalar approach included the definition of national guidelines and the development of three maritime spatial (MS) plans, one for each maritime area (Adriatic, Ionian and Central Mediterranean, and Tyrrhenian and Western Mediterranean), including subareas and nested planning units. The development of the MS plans involved competent Ministries, the coastal Regions and several researchers. Based on the description of the adopted six-phase methodology and the exemplification of results of the Italian MSP process, this paper discusses the most relevant features and common challenges of multi-scalar MSP (i.e. co-planning, vertical and horizontal integration, multi-level governance, scalability, flexibility, integration of data and knowledge with different resolution, multi-scalar stakeholder engagement). Finally, the paper reflects on some novel aspects of the adopted multi-scalar approach and identifies actions to grant efficacy to this approach during the next phases of the Italian MSP proces

The Value of Reducing Cancer Risks at Contaminated Sites: Are More Heavily Exposed People Willing to Pay More?

We use conjoint choice questions to investigate people’s tastes for cancer risk reductions and income in the context of public programs that would provide for remediation at abandoned industrial contaminated sites. Our survey was self-administered using the computer by persons living in the vicinity of an important contaminated site on the Italian National Priority List. The value of a prevented case of cancer is €2.6 million, but this figure does vary with income, perceived exposure to contaminants, and opinions about priorities that should be pursued by cleanup programs.Value of a Statistical Case of Cancer, Conjoint Choice Experiments, Contaminated Sites, Abandoned Sites, Reuse, Remediation