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evaluating the economic impacts resulting from Climate change

evaluating the economic impacts resulting from Climate change

12-11-09ECONOMIC

12-11-09ECONOMIC CONSEQUENCES OF THE CLIMATE CHANGE IMPACTS Direct economic effects are the ones associated with producTon of transportaTon services. In an economic sense, those are impacts on inputs of producTon and services produced by these inputs of producTon Indirect economic effects of climate change impacts are associated with consumers of transportaTon services such as households and economic sectors other than transportaTon. Climate Change Impacts -­‐ ↑ Sea Level -­‐ ↑ PrecipitaTons -­‐ ↑ Temperature -­‐ ↑ Frequency of Extreme Weather Events Direct Economic Effects on TransportaFon Indirect Economic Effects on TransportaFon Inputs of ProducFon TransportaFon Services -­‐ Permanent or temporary disrupTon of services -­‐ DeterioraTon of quality Household Other Economic Sectors -­‐ Loss of labour income and profits -­‐ ↑ Travel Tmes -­‐ Accidents -­‐ Change in demand for transportaTon services -­‐ NegaTve health effects -­‐-­‐Capital Assets Infrastructure Vehicles TransportaFon Labour -­‐ Direct damage to vehicles and infrastructure -­‐ ↑ Maintenance costs -­‐ NegaTve health effects on people directly involved in producTon of transportaTon services Supply of TransportaFon Demand for TransportaFon Fig 1. Climate Change Impacts and their Economic Effects on the TransportaFon System 2

12-11-09LONG-­‐TERM GOAL VS SHORT-­‐TERM GOAL LONG-­‐TERM GOAL: Dynamic model of the NB/NS transport corridor will be constructed, and all direct and indirect economic effects of climate change impacts will be imposed on this dynamic model to trace their economic consequences over Tme; evaluaTon of miTgaTon strategies on the basis of the model. SHORT-­‐TERM GOAL: EvaluaTon of all direct and indirect effects in monetary terms ECONOMIC CONSEQUENCES OF THE CLIMATE CHANGE IMPACTS ON NB/NS TC • Loss of asset value and increase/decrease in maintenance costsassociated with transportation infrastructure (direct effects oninputs of production)• Loss of value added by transportation (direct effects ontransportation services)• Travel time loss due to traffic interruptions and changes inprecipitation patterns (direct effects on transportation services;indirect effects on consumers)• Increase in costs of accidents (direct effects on inputs ofproduction and transportation services; indirect effects onconsumers)• Loss of labor income and profits in economic sectors other thantransportation (indirect effects on consumers)3

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