The economic assessment of changes in ecosystem services: an application of the CGE methodology

Francesco Bosello, Fabio Eboli, Ramiro Parrado, Paolo A.L.D. Nunes, Helen Ding, Renato Rosa

Abstract

The present study integrates Computable General Equilibrium (CGE) modelling with biodiversity services, proposing a possible methodology for assessing climate-change impacts on ecosystems. The assessment focuses on climate change impacts on carbon sequestration services provided by European forest, cropland and grassland ecosystems and on provisioning services, but provided by forest and cropland ecosystems only. To do this via a CGE model it is necessary to identify first the role that these ecosystem services play in marketable transactions; then how climate change can impact these services; and finally how the economic system reacts to those changes by adjusting demand and supply across sectors, domestically and internationally.

Keywords

Climate change; Ecosystems services; Integrated assessment; CGE

Subject classification

C68, Q51, Q54, Q57.

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