Global Warming and the American Economy: A Regional Assessment of Climate Change Impacts (New Horizons in Environmental Economics series)

The impact of climate change on seven regions of the United States is studied in this new collection. The basic hypothesis of the study is that warming would be beneficial to the economies of the colder northern regions but harmful to the economies of the warmer more southern regions. This is confirmed in a careful set of sectoral studies applied to each region. Because of its importance, two methods are used to study agriculture. Agriculture is analyzed using both an agronomic-economic simulation model and a cross-sectional Ricardian analysis. The two capital-intensive sectors affected by climate are analyzed with explicit dynamic models. A dynamic ecological-economic model is applied to forestry and a dynamic sea-level rise model is applied to study coastal impacts. A hydrologic-economic simulation model of selected watersheds is used for water and a cross-sectional empirical approach is used for energy. In each case, a national model is estimated and results are desegregated to the regional level. Because the study focuses on including efficient adaptation responses, the special role of adaptation is discussed in detail. The book concludes with a discussion of the impacts across the country and in each region. Any reader interested in climate change and its impacts should find this book of detailed results enlightening. The book is especially useful for people interested in studying impact methodologies.