Investing to Mitigate and Adapt to Climate Change : A Framework Model

Optimal public policy decisions in the face of competing funding demands for climate action and welfare capital investment

Abstract

The authors propose a macroeconomic model to assess optimal public policy decisions in the face of competing funding demands for climate change action versus traditional welfare-enhancing capital investment. How to properly delineate the costs and benefits of traditional versus adaption-focused development remains an open question. The paper places particular emphasis on the changing level of risk and vulnerabilities faced by developing countries as they allocate investment toward growth strategies, adapting to climate change and emissions mitigation.

This work is part of the ‘Macroeconomics in Low-income countries’ programme

Citation

Anthony Bonen, Prakash Loungani, Willi Semmler, Sebastian Koch (2016). Investing to Mitigate and Adapt to Climate Change : A Framework Model. IMF Working Paper No. 16/164

Investing to Mitigate and Adapt to Climate Change : A Framework Model

Published 5 August 2016