TY  - JOUR
A1  - Piontek, Franziska
A1  - Kalkuhl, Matthias
A1  - Kriegler, Elmar
A1  - Schultes, Anselm
A1  - Leimbach, Marian
A1  - Edenhofer, Ottmar
A1  - Bauer, Nico
T1  - Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling
JF  - Environmental & resource economics : the official journal of the European Association of Environmental and Resource Economists
N2  - Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics.
KW  - Climate change
KW  - Damages
KW  - Economic growth
KW  - Impact channels
KW  - Production factors
KW  - Persistence
Y1  - 2018
U6  - https://doi.org/10.1007/s10640-018-00306-7
SN  - 0924-6460
SN  - 1573-1502
VL  - 73
IS  - 4
SP  - 1357
EP  - 1385
PB  - Springer
CY  - Dordrecht
ER  - 
TY  - JOUR
A1  - Schultes, Anselm
A1  - Piontek, Franziska
A1  - Soergel, Bjoern
A1  - Rogelj, Joeri
A1  - Baumstark, Lavinia
A1  - Kriegler, Elmar
A1  - Edenhofer, Ottmar
A1  - Luderer, Gunnar
T1  - Economic damages from on-going climate change imply deeper near-term emission cuts
JF  - Environmental research letters
N2  - Pathways toward limiting global warming to well below 2 ∘C, as used by the IPCC in the Fifth Assessment Report, do not consider the climate impacts already occurring below 2 ∘C. Here we show that accounting for such damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the persistence time of damages. The Integrated Assessment Model we use includes the climate system and mitigation technology detail required to derive near-term policies. We find an optimal carbon price of $115 per tonne of CO2 in 2030. The long-term persistence of damages, while highly uncertain, is a main driver of the near-term carbon price. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions by two thirds, compared to pathways considering the 2 ∘C limit only.
KW  - climate change
KW  - climate mitigation
KW  - climate impacts
KW  - integrated assessment
Y1  - 2021
U6  - https://doi.org/10.1088/1748-9326/ac27ce
SN  - 1748-9326
VL  - 16
IS  - 10
PB  - IOP Publishing
CY  - Bristol
ER  -