Climate Change and Uneven Development

Lucas Bretschger, Simone Valente

Research output: Contribution to journalArticle

20 Citations (Scopus)

Abstract

In this paper, using a theoretical model with endogenous capital depreciation, we study the effects of climate change and adaptation on long-run development. We show that climate change affects economic growth depending on climate exposure and adaptation efficiency, which are asymmetric between different countries. Poor countries are likely to be hurt more, because of the negative effects of climate change on the rate of depreciation of the assets that represent the engine of growth. These asymmetries generally induce growth deficits and unsustainability traps in less-developed economies.
Original languageEnglish
Pages (from-to)825-845
Number of pages21
JournalScandinavian Journal of Economics
Volume113
Issue number4
Early online date18 Oct 2011
DOIs
Publication statusPublished - Dec 2011

Keywords

  • Climate adaptation
  • climate change
  • endogenous growth
  • pollution
  • uneven development

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