Impact of Global Warming on a Regional Economy through Fluctuation in Agricultural Production: Utilizing the Multi-Regional CGE Model

Abstract

The purpose of our study is to measure the impact of climate change caused by global warming on a regional economy through the fluctuation in agricultural production. We have some knowledge of the previous studies that climate change will affect differently the production of crops in each region. We find the following result by using a regional computable general equilibrium (CGE) model comprised of six regions. In the western regions of Japan that future climate change will decrease crop productivity dramatically, those regional economies being supported by agriculture and the related food-processing industry will worsen and the economic welfare of those regions will decrease.