Abstract
Climate damage and adaptation are key modules in the integrated assessment modelling on climate-economy system, both of which will directly affect the stringency of climate policy. This paper explores the recent academic advancement in these two aspects. As for climate damage, an emerging strand of literature not only focuses on the overall impact of rising temperature on economic production, but also sheds more spotlights on how rising temperature can cause economic losses through shocks to capital stock, labor supply, technical change and natural capital. Although recent studies illuminate directions for improving damage function under varying degrees of temperature rise, enormous disputes still hang over the concrete settings of the damage function. Existing climate-adaptation models commonly resort to either adaptive investment or market mechanisms. However, additional examinations should be warranted of related constraints on adaptation to avoid overestimating the effects of climate adaptation, as well as the regional heterogeneity in adaptation strategies. Future research should take into account social damages caused by climate change, other climate risk characteristics in addition to rising temperature, and how they channel corresponding effects. Furthermore, more empirical studies are needed to help refine the constructions and calibrations of the damage function, and probability tools are called for to investigate the uncertainties of climate damage and adaptation, in a shared effort to provide references for guiding climate policy practices.
Translated title of the contribution | Advances in climate damage and adaptation research in modelling complex climate-economy system |
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Original language | Chinese (Traditional) |
Pages (from-to) | 2179-2194 |
Number of pages | 16 |
Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
Volume | 43 |
Issue number | 8 |
DOIs | |
Publication status | Published - Aug 2023 |