Abstracts

The Importance of Integration of Economic Analysis into Climate Change I&A Research and Methodological Challenges

Timothy Folkins
Environment Canada
timothy.folkins@ec.gc.ca

One of the most pressing environmental challenges facing Canadians is that of climate change. The international scientific community has concluded that the rapid increase in the concentration of greenhouse gases in the atmosphere can be expected to increase the earth’s surface temperature, change our climate, and alter our environment.

Due to past and current global greenhouse gas emissions, some adaptation to climate change will be required regardless of the success of actions to reduce emissions. Even if rapid and sustained emissions reductions are achieved, the impacts of climate change will continue to be felt for many decades and adaptation actions will be required.

To date focus has been on understanding the biophysical impacts of climate change. It is of central importance that these results be augmented by studies which will estimate economic and social impacts resulting from the biophysical. This is needed in order for policy makers and the general public to make informed decisions about issues with long lasting consequences to minimize the damage and maximize the benefits that climate change will bring.

While recognizing this need it will not be an easy task to provide this information. As with any complex system it is difficult to model and estimate economic impacts of climate change which present very unique methodological challenges. Climate impacts supply as it is a factor of production to many industries. Climate also impacts demand as it is a substitute and a compliment to many of the goods we consume on a daily basis. Climate impacts everyone’s daily lives in a number of facets. Due to the unique nature of the challenge unique methods will have to be developed and applied.

2005-04-05