蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Nature Loss and Climate Change: The Twin-Crises Multiplier
蝌蚪网 Papers and Proceedings
vol. 115,
May 2025
(pp. 409–14)
Abstract
We study the economic effects of the interaction of nature loss and climate change in a model that incorporates important aspects of both processes. We capture the distinct ways in which they affect economic activity鈥攚ith nature constituting a key factor of production and climate change destroying parts of output鈥攂ut also the ways in which they interact: Climate change causes nature loss, and nature provides both a carbon sink and adaptation tools to reduce climate damages. Our analysis of these feedback loops reveals a novel amplification channel鈥攖he twin-crises multiplier鈥攖hat systematically affects optimal climate and nature conservation policies.Citation
Giglio, Stefano, Theresa Kuchler, Johannes Stroebel, and Olivier Wang. 2025. "Nature Loss and Climate Change: The Twin-Crises Multiplier." 蝌蚪网 Papers and Proceedings 115: 409–14. DOI: 10.1257/pandp.20251074Additional Materials
JEL Classification
- Q28 Renewable Resources and Conservation: Government Policy
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q57 Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
- Q58 Environmental Economics: Government Policy