Study of the Economic Impacts of Climate Change in Peru

Study of the Economic Impacts of Climate Change in Peru

Client: Inter-American Development Bank

Origin of Funding: Inter-American Development Bank

Country: Peru

Project Value: £240 000

Dates: April 2011 - Dec 2012

Lead Office: PAC LA

Description of the Project:

A study into the Economic Impacts of Climate Change in Peru is requested by the National Steering Committee, formed by the Peruvian Ministries of Economy, Environment and International Relations. This is a country-level study inspired by the Stern Review. The main goal of this project is to identify the impacts of climate change on peoples’ well-being and economic production in Peru.

The study aims to use the following innovative approaches:

• A description of terrestrial and maritime ecosystems change as a conceptual base for the assessment of economic    change

• The links between biological and economic models of climate change for economic impact analysis. E.g. modelling of tourism and roads in terms of impact from extreme events

• The health modelling of Malaria, Dengue and Leishmaniasis, in order to investigate potential patterns of change

• The downscaling of seven Global Climate Models for a country level analysis of different productive activities

Work carried out by PAC team:

• Carried out an  Evaluation of how the climate will modify natural resources, quantifying the potential change, construction and assemblage of the biological and economic models

• Evaluated potential changes on extreme events at a national scale, estimate specific changes on water flow extremes, recommendations for public policies regarding adaptation

• Implemented a communications strategy to disseminate results to the wider public and in particular to influence authorities responsible for public policy decision-making on adaptation and mitigation issues

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