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GTAP Resource #3919

"The economic impact of climate driven changes in water availability in Switzerland"
by Faust, Anne-Kathrin, Camille Gonseth and Marc Vielle

The broad objective of this study is to estimate the economic impact of changes in water availability due to climate change in Switzerland with a 2050 time horizon. More specifically, this study employs GEMINI-E3, a computable general equilibrium model based on a GTAP database that is particularly designed for the analysis of climate change and energy policies. The sectorial structure of the model is being extended in order to assess the economic impact of climate change on particularly sensitive sectors and to study the role of adaptation for alleviating climate change costs. To assess the consequences of changes in water availability, raw water resources are introduced as a production factor into GEMINI-E3. Further, a drinking water distribution sector is specified for Switzerland to allow for a precise analysis of the economic consequences of restricted water supply.
Predictions of water availability in 2050 are taken from an innovative hydrological model developed for Switzerland in the framework of the Swiss Federal Office of the Environment CCHydro project and alternative climate change scenarios from the EU-ENSEMBLES project are considered. Simulations show possible restrictions in water resource availability to increase raw water prices substantially compared to the baseline. Sectors most affected are the water distribution and agricultural sectors that use irrigation. However, the global economic impact for Switzerland is small due to the low price of raw water and its small value in the baseline. Finally, the simulation of scenarios featuring alternative levels of endogenous adaptive capacity of the economy reveals the possible economic impact of adaptation to climate change.

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: Faust, A. (4/30/2012)
Updated: Faust, A. (6/20/2012)
Visits: 1,437
- Calibration and parameter estimation
- Europe (Western)

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