Conference paper

Description

After East Japan earth quake and flood in Thailand in 2011, firms try to diversify location of their material suppliers, and this probably increases spatial flexibility, i.e. spatial dependence, in economic structure. Considering such economic structural change, to evaluate impacts of future climate change, which is supposed to influence economy in different direction according to regions, is academically important. This study aims to measure how impacts of climate change differ due to degree of spatial dependence. We used a spatial CGE model with consideration of inter-regional trade function. The simulation results demonstrate that, first, future climate change increased Japanese rice production for the country as a whole, but the price of rice decreased. An increase in regional dependence increased changes in production and decreased price change caused by future climate change. Second, as a result of production and price changes, climate change makes the income of farmers in the rice sector decrease, despite the increase in production. Third, an increase in regional dependence decreased regional inequalities of GRP caused by climate change. As such, impacts of climate change become different according to regional dependence in economy. To consider policy countermeasures against climate change, the spatial CGE model can provide useful information.

Publication Details
Published year only: 
2014
18
Share
Share
Geographic Coverage
Advertisement