S. Niggol Seo (email: email@example.com) is a Senior Fellow, Agricultural and Resource Economics, Faculty of Agriculture, Food, and Natural Resources, The University of Sydney, Sydney, New South Wales, Australia.
The impacts of climate change on Australia and New Zealand: a Gross Cell Product analysis by land cover*
Article first published online: 7 APR 2011
© 2011 The Author. AJARE © 2011 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd
Australian Journal of Agricultural and Resource Economics
Volume 55, Issue 2, pages 220–238, April 2011
How to Cite
Seo, S. N. (2011), The impacts of climate change on Australia and New Zealand: a Gross Cell Product analysis by land cover. Australian Journal of Agricultural and Resource Economics, 55: 220–238. doi: 10.1111/j.1467-8489.2011.00531.x
I thank Professor William Nordhaus at Yale University for more than a decade long efforts in building the G-ECON database. The views expressed in this paper are the author’s alone.
- Issue published online: 7 APR 2011
- Article first published online: 7 APR 2011
- climate change;
- Gross Cell Product;
This paper examines the newly constructed geographically scaled economic output measure, Gross Cell Product (GCP), of Australia and New Zealand to quantify the impacts of climate change in the region. The paper discusses advantages of using the GCP instead of the Gross Domestic Product. The paper reveals that the GCP falls sharply as temperature increases in the region. A 1°C increase in temperature would decrease the productivity with an elasticity of −2.4. A 1 per cent decrease in precipitation would decrease productivity with an elasticity of −2.3. However, forest vegetation on the coasts will benefit from initial warming. We find that the changes in climate means are potentially more harmful than changes in climate variability. In the long term, a 3.4° warming coupled with 6.6 mm decrease in rainfall would decrease the GCP by 34 per cent by 2060. The damage is largely accounted for by population effects. The paper confirms that Australia is highly constrained by climate and geographic factors.