Climate Change, Growth and Infrastructure Investment: The Case of Mozambique

Joint Program Reprint • Journal Article
Climate Change, Growth and Infrastructure Investment: The Case of Mozambique
Arndt, C., P. Chinowsky, K. Strzepek and J. Thurlow (2012)
Review of Development Economics, 16(3): 463-475

Reprint 2012-19 [Read Full Article]

Abstract/Summary:

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.

© 2012 Blackwell Publishing Ltd.

Citation:

Arndt, C., P. Chinowsky, K. Strzepek and J. Thurlow (2012): Climate Change, Growth and Infrastructure Investment: The Case of Mozambique. Review of Development Economics, 16(3): 463-475 (http://dx.doi.org/10.1111/j.1467-9361.2012.00674.x)
  • Joint Program Reprint
  • Journal Article
Climate Change, Growth and Infrastructure Investment: The Case of Mozambique

Arndt, C., P. Chinowsky, K. Strzepek and J. Thurlow

2012-19
16(3): 463-475

Abstract/Summary: 

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.

© 2012 Blackwell Publishing Ltd.