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Title:Schelling's conjecture on climate and development: A test PDF Logo
Authors:Anthoff, David
Tol, Richard S. J.
Issue Date:2011
Series/Report no.:ESRI working paper 390
Abstract:We use the integrated assessment model FUND to compute the income elasticities of climate change impacts for different world regions over time. We find limited support for Schelling's Conjecture that development might be the best defense against climate change impacts, and for the idea that the impacts from climate change might be akin to a luxury good. For very poor regions, an increase in income in the short run is an effective tool to reduce impacts from climate change by making those societies less vulnerable, in particular to infectious diseases. While net climate impacts appear to be akin to a luxury good for some countries at specific times, that effect disappears in the long run as impacts from agriculture make up a large share of total impacts.
Document Type:Working Paper
Appears in Collections:ESRI Working Papers, The Economic and Social Research Institute (ESRI)

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