Costs and Benefits of Climate Change in Switzerland

Vöhringer, Frank; Vielle, Marc; Thalmann, Philippe; Frehner, Anita; Knoke, Wolfgang; Stocker, Dario; Thurm, Boris (2019). Costs and Benefits of Climate Change in Switzerland. Climate Change Economics, 10(2), pp. 1-34. World Scientific 10.1142/S2010007819500052

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Understanding the economic magnitude of climate change (CC) impacts is a prerequisite for developing adequate adaptation strategies. In Switzerland, despite new climate scenarios and impact studies, only few impacts have been monetized. Our objective is to assess costs and opportunities of CC for Switzerland by 2060, while enhancing the assessment methods. Using inputs from bottom-up impact studies, we simulate the economic consequences of climate scenarios in a computable general equilibrium (CGE) framework. We cover health, buildings/infrastructure, energy, water, agriculture, tourism, the spill-overs to other sectors, and international effects. Due to data constraints, significant impacts have not been quantified, e.g., for heat waves and droughts more extreme than the 2060 average climate. For the considered impacts, welfare decreases by 0.37% to 1.37% in 2060 relative to a reference without CC. Higher summer temperatures increase mortality and decrease productivity. Contrariwise, tourism benefits from extended summer seasons. Regarding energy, increased demand for cooling is overcompensated by savings in heating.

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