Climate Change Impacts in Computable General Equilibrium Models: An Overview

This paper gives an overview about existing Computable General Equilibrium (CGE) models dealing with climate impacts focusing on damage calculations and adaptation modelling. Empirical CGE models are used in a broad field of policy analysis. With respect to climate change applications have been focused on the calculation of climate damages and the mitigation of these damages. Facing the non-preventable damages from climate change that occur already in the next decades adaptation is becoming a more important issue in the actual discussion. To our knowledge a model with explicit adaptation at the local level that includes socio-economic effects is missing. Such a regional model can analyse welfare effects where adaptation is implemented and therefore is important for political decision making.