Arbeitspapier

Who bears the costs of climate change? Evidence from Tunisia

In order to estimate the economic costs of climate change for Tunisia, this paper uses a combination of biophysical and economic models. In addition, the paper draws on the literature to complement the quantitative analysis with policy recommendations on how to adapt to the changing climate. The results bear out the expectation that climate change has a negative but weak overall effect on the Tunisian economy. Decomposing the global and local effects shows that global climate change may benefit the agricultural sector since higher world market prices for agricultural commodities are likely to stimulate export expansion and import substitution. Locally felt climate change, however, is likely to hurt the agricultural sector as lower yields reduce factor productivities lead to lower incomes and higher food prices. The combined local and global effects are projected to be mostly negative and the costs will have to be carried mainly by urban and richer households. From a policy perspective, the results suggest that Tunisia should try to maximize the benefits from rising global agricultural prices and to minimize (or reverse) declining crop yields at home.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 1952

Classification
Wirtschaft
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Household Production and Intrahousehold Allocation
Computable General Equilibrium Models
Subject
climate change
agricultural growth
distribution
general equilibrium analysis
Tunisia
Middle East and North Africa

Event
Geistige Schöpfung
(who)
Wiebelt, Manfred
Al-Riffai, Perrihan
Breisinger, Clemens
Robertson, Richard
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2014

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Wiebelt, Manfred
  • Al-Riffai, Perrihan
  • Breisinger, Clemens
  • Robertson, Richard
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2014

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