The distributional impact of climate change on rich and poor countries

ROBERT MENDELSOHN, ARIEL DINAR, LARRY WILLIAMS
2006 Environment and Development Economics  
This paper examines the impact of climate change on rich and poor countries across the world. We measure two indices of the relative impact of climate across countries, impact per capita, and impact per GDP. These measures sum market impacts across the climate-sensitive economic sectors of each country. Both indices reveal that climate change will have serious distributional impact across countries, grouped by income per capita. We predict that poor countries will suffer the bulk of the damages
more » ... bulk of the damages from climate change. Although adaptation, wealth, and technology may influence distributional consequences across countries, we argue that the primary reason that poor countries are so vulnerable is their location. Countries in the low latitudes start with very high temperatures. Further warming pushes these countries ever further away from optimal temperatures for climatesensitive economic sectors.
doi:10.1017/s1355770x05002755 fatcat:v73xoqdo7va5jn7v2usvr3hquy