IMF Working Papers

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

ByAnthony Bonen, Prakash Loungani, Willi Semmler, Sebastian Koch

August 5, 2016

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Anthony Bonen, Prakash Loungani, Willi Semmler, and Sebastian Koch. "Investing to Mitigate and Adapt to Climate Change: A Framework Model", IMF Working Papers 2016, 164 (2016), accessed 12/15/2025, https://doi.org/10.5089/9781475523690.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We propose a macroeconomic model to assess optimal public policy decisions in the 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.

Subject: Climate change, Climate policy, Environment, Greenhouse gas emissions, Non-renewable resources, Revenue administration

Keywords: adaptation policy option, Climate Change, climate change damage, climate change impact literature, climate change investment policy, climate change policy approach, Climate policy, economic development, Fiscal Policy, Global, greenhouse gas, Greenhouse gas emissions, implementation framework, mitigation effort, mitigation policy funding, no-policy-action scenario, Non-renewable resources, Nonlinear Model Predictive Control, policy implementation framework, Public Capital, stopping climate change, WP

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