Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314658 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11619
Publisher: 
CESifo GmbH, Munich
Abstract: 
We study the economic effects of the interaction of nature loss and climate change in a model that incorporates important aspects of both processes. We capture the distinct ways in which they affect economic activity—with nature constituting a key factor of production and climate change destroying parts of output—but also the ways in which they interact: climate change causes nature loss, and nature provides both a carbon sink and adaptation tools to reduce climate damages. Our analysis of these feedback loops reveals a novel amplification channel—the Twin-Crises Multiplier—that systematically affects optimal climate and nature conservation policies.
Subjects: 
climate change
biodiversity loss
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.