Project description
This study assessed the transboundary effects of climate change on the Spanish economy associated with impacts on the tourism sector. The analysis focused on how climate impacts occurring in other countries may affect Spain through international economic linkages, influencing variables such as imports, exports, sectoral production, employment, prices and overall economic activity measured in terms of Gross Domestic Product (GDP).
The assessment was carried out using a multi-country computable general equilibrium (CGE) model that incorporates international trade flows and sectoral interactions across economies. The model simulated how climate shocks affecting tourism in different regions of the world alter market equilibria – including goods, services, labour and capital markets – and quantified their transboundary economic effects on Spain.
The study also evaluated the impacts of these climate shocks on private consumption and economic welfare, considering bilateral trade linkages as the transmission mechanism through which climate-related impacts in other regions affect the Spanish economy.
Project details
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ClientBiodiversity Foundation. Ministry for Ecological Transition and Demographic Challenge (MITECO)
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SolutionClimate change and energy
Public policy
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Dates01/2023 - 06/2024
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LocationSpain
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