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How Might Climate Change Affect Economic Growth in Developing Countries? A Review of the Growth Literature with a Climate Lens

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dc.contributor.authorLecocq, Franck
dc.contributor.authorShalizi, Zmarak
dc.date.accessioned2012-06-06T15:59:18Z
dc.date.available2012-06-06T15:59:18Z
dc.date.issued2007-08
dc.description.abstractThis paper reviews the empirical and theoretical literature on economic growth to examine how the four components of the climate change bill, namely mitigation, proactive (ex ante) adaptation, reactive (ex post) adaptation, and ultimate damages of climate change affect growth, especially in developing countries. The authors consider successively the Cass-Koopmans growth model and three major strands of the subsequent literature on growth: with multiple sectors, with rigidities, and with increasing returns. The paper finds that although the growth literature rarely addresses climate change per se, some issues discussed in the growth literature are directly relevant for climate change analysis. Notably, destruction of production factors, or decrease in factor productivity may strongly affect long-run equilibrium growth even in one-sector neoclassical growth models; climatic shocks have had large impacts on growth in developing countries because of rigidities; and the introducing increasing returns has a major impact on growth dynamics, in particular through induced technical change, poverty traps, or lock-ins. Among the most important gaps identified in the literature are lack of understanding of the channels by which shocks affect economic growth, lack of understanding of lock-ins, heavy reliance of numerical models assessing climate policies on neoclassical-type growth frameworks, and frequent use of an inappropriate "without climate change" counterfactual.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/08/8088977/might-climate-change-affect-economic-growth-developing-countries-review-growth-literature-climate-lens
dc.identifier.doi10.1596/1813-9450-4315
dc.identifier.urihttps://hdl.handle.net/10986/7260
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4315
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE CONSEQUENCES
dc.subjectADVERSE IMPACTS
dc.subjectAGGREGATE LEVEL
dc.subjectAGGREGATE OUTPUT
dc.subjectAGRICULTURAL PRODUCTIVITY
dc.subjectAGRICULTURE
dc.subjectATMOSPHERE
dc.subjectBANKING CRISIS
dc.subjectBIODIVERSITY
dc.subjectCAPITAL STOCK
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE MODELS
dc.subjectCLIMATE CHANGE RESEARCH
dc.subjectCLIMATE PROTECTION
dc.subjectCLOSED ECONOMY
dc.subjectCO2
dc.subjectCO2 EMISSIONS
dc.subjectCOMMODITIES
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE ADVANTAGES
dc.subjectCONSTANT RATE
dc.subjectCONSTANT RETURNS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMPTION GOODS
dc.subjectCONSUMPTION INCREASES
dc.subjectCOUNTRY REGRESSIONS
dc.subjectCYCLICAL VOLATILITY
dc.subjectDAMAGES
dc.subjectDECREASING RETURNS
dc.subjectDEFORESTATION
dc.subjectDEPRECIATION RATE OF CAPITAL
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT RESEARCH
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDIMINISHING RETURNS
dc.subjectDISCOUNT RATE
dc.subjectDISEASES
dc.subjectECONOMIC ACTIVITIES
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC AGENTS
dc.subjectECONOMIC CONSEQUENCES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GEOGRAPHY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC MODELS
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMICS
dc.subjectECONOMIES OF SCALE
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectELECTRICITY
dc.subjectEMISSIONS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL RESULTS
dc.subjectEMPIRICAL STUDIES
dc.subjectENDOGENOUS VARIABLES
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPORTS
dc.subjectFACTOR ACCUMULATION
dc.subjectFACTOR PRICES
dc.subjectFACTORS OF PRODUCTION
dc.subjectFINANCIAL CRISES
dc.subjectFLOODING
dc.subjectFOREIGN INVESTMENT
dc.subjectFORESTRY
dc.subjectFORESTS
dc.subjectFOSSIL FUELS
dc.subjectFRAMEWORK CONVENTION ON CLIMATE CHANGE
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGEOGRAPHIC CONCENTRATION
dc.subjectGHGS
dc.subjectGLACIERS
dc.subjectGLOBAL LEVEL
dc.subjectGREENHOUSE GASES
dc.subjectGROSS OUTPUT
dc.subjectGROWTH ACCOUNTING
dc.subjectGROWTH EQUATION
dc.subjectGROWTH LITERATURE
dc.subjectGROWTH MODEL
dc.subjectGROWTH OF LABOR
dc.subjectGROWTH PATH
dc.subjectGROWTH PROCESS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATE OF OUTPUT
dc.subjectGROWTH RATES
dc.subjectGROWTH REGRESSION
dc.subjectGROWTH REGRESSIONS
dc.subjectGROWTH THEORY
dc.subjectHUMAN CAPITAL
dc.subjectINCREASING RETURNS
dc.subjectINCREASING RETURNS TO SCALE
dc.subjectINDIVIDUAL WELFARE
dc.subjectINFANT
dc.subjectINFANT MORTALITY
dc.subjectINFANT MORTALITY RATE
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORIES
dc.subjectINVESTMENT IN EDUCATION
dc.subjectIPCC
dc.subjectIRRIGATION
dc.subjectKYOTO PROTOCOL
dc.subjectLABOR FORCE
dc.subjectLANDLOCKED COUNTRIES
dc.subjectLDCS
dc.subjectLEVEL OF CAPITAL
dc.subjectLEVEL OF TECHNOLOGY
dc.subjectLEVELS OF CAPITAL
dc.subjectLONG RUN
dc.subjectLONG-TERM GROWTH
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMALARIA
dc.subjectMARGINAL PRODUCT
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARGINAL UTILITY
dc.subjectMIDDLE EAST
dc.subjectMIGRATION
dc.subjectNATIONAL AUTHORITIES
dc.subjectNATURAL DISASTERS
dc.subjectNATURAL RESOURCES
dc.subjectNEOCLASSICAL GROWTH MODEL
dc.subjectNEOCLASSICAL GROWTH MODELS
dc.subjectNEOCLASSICAL GROWTH THEORY
dc.subjectNETWORK EXTERNALITIES
dc.subjectNUCLEAR ENERGY
dc.subjectOUTPUT GROWTH
dc.subjectOUTPUT PER CAPITA
dc.subjectOUTPUT RATIO
dc.subjectOUTPUT STRUCTURE
dc.subjectOVERVALUATION
dc.subjectPER CAPITA GROWTH
dc.subjectPOLICY CONCERN
dc.subjectPOLICY DEBATE
dc.subjectPOLICY DECISIONS
dc.subjectPOLICY MEASURES
dc.subjectPOLICY OPTIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOLICY VARIABLES
dc.subjectPOPULATION DENSITY
dc.subjectPOPULATION INCREASES
dc.subjectPOTENTIAL IMPACTS
dc.subjectPOVERTY TRAPS
dc.subjectPRECIPITATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY OF CAPITAL
dc.subjectPROGRESS
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC TRANSPORTATION
dc.subjectRATE OF GROWTH
dc.subjectRATE OF POPULATION GROWTH
dc.subjectRATE OF RETURN
dc.subjectREAL GDP
dc.subjectRELATIVE IMPORTANCE
dc.subjectRENEWABLE ENERGY
dc.subjectRESOURCE ALLOCATION
dc.subjectRESPECT
dc.subjectRIVERS
dc.subjectRULE OF LAW
dc.subjectSAVING RATE
dc.subjectSAVINGS
dc.subjectSECTOR MODEL
dc.subjectSHORT SUPPLY
dc.subjectSIGNIFICANT IMPACT
dc.subjectSTRUCTURAL CHARACTERISTICS
dc.subjectSTRUCTURAL POLICIES
dc.subjectSUB-SAHARAN AFRICA
dc.subjectTECHNICAL CHANGE
dc.subjectTECHNOLOGICAL CHANGE
dc.subjectTEMPERATURE
dc.subjectTFP
dc.subjectTHEORETICAL MODELS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL FACTOR PRODUCTIVITY GROWTH
dc.subjectTOTAL OUTPUT
dc.subjectTRADE BALANCE
dc.subjectTRADE SHOCKS
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPORTATION
dc.subjectUNDERESTIMATES
dc.subjectUNEMPLOYMENT
dc.subjectURBAN DEVELOPMENT
dc.subjectUTILITY FUNCTION
dc.subjectUTILITY FUNCTIONS
dc.subjectVULNERABILITY
dc.subjectWEALTH
dc.titleHow Might Climate Change Affect Economic Growth in Developing Countries? A Review of the Growth Literature with a Climate Lensen
dspace.entity.typePublication
okr.crossref.titleHow Might Climate Change Affect Economic Growth In Developing Countries ? A Review Of The Growth Literature With A Climate Lens
okr.date.doiregistration2025-04-10T10:42:38.379414Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/08/8088977/might-climate-change-affect-economic-growth-developing-countries-review-growth-literature-climate-lens
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeHealth, Nutrition, and Population
okr.guid527171468313507944
okr.identifier.doi10.1596/1813-9450-4315
okr.identifier.externaldocumentum000158349_20070813145822
okr.identifier.internaldocumentum8088977
okr.identifier.reportWPS4315
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/08/13/000158349_20070813145822/Rendered/PDF/wps4315.pdfen
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicEconomic Theory and Research
okr.topicHealth, Nutrition and Population::Population Policies
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicClimate Change
okr.topicEnvironment
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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