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Climate Change, Growth and Infrastructure Investment: The Case of Mozambique
Author(s) -
Arndt Channing,
Chinowsky Paul,
Strzepek Kenneth,
Thurlow James
Publication year - 2012
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2012.00674.x
Subject(s) - economics , climate change , investment (military) , natural resource economics , economic geography , development economics , political science , geology , politics , law , oceanography
Climate change may damage road infrastructure, to the potential detriment of economic growth, particularly in developing countries. To quantitatively assess climate change's consequences, we incorporate a climate–infrastructure model based on stressor–response relationships directly into a recursive dynamic economy‐wide model to estimate and compare road damages with other climate change impact channels. We apply this framework to Mozambique and simulate four future climate scenarios. Our results indicate that climate change through 2050 is likely to place a drag on economic growth and development prospects. The economic implications of climate change appear to become more pronounced from about 2030. Nevertheless, the implications are not so strong as to drastically diminish development prospects. Our findings suggest that impact assessments should include damages to long‐run assets, such as road infrastructure, imposed by climate change.