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Abstract
Despite the extensive literature on the economics of climate change, there have been few studies with extensive coverage of Latin America and even fewer linking macro impacts to income distribution. This paper addresses the above issues in the context of a global general equilibrium model with an integrated climate module. Relative to their share of global emissions, LAC countries are disproportionately affected by climate change damages. Although welfare declines for all households, agricultural households benefit somewhat from rising food prices. Due to its low carbon intensity, the region stands to gain substantially from efficient mitigation or a capand-trade system.