Global Warming impact on Egyptian Economy Versus Mexican Economy | ||
| التجارة والتمويل | ||
| Volume 43, Issue 3, September 2023, Pages 286-317 PDF (1.66 M) | ||
| DOI: 10.21608/caf.2023.319864 | ||
| Author | ||
| Karim Hassanien | ||
| 19 El-Khaleefa El-Maamon Street, Apt. 501, Roxy Towers (Tower A), Heliopolis, Cairo, Egypt. | ||
| Abstract | ||
| The purpose of this study is to identify the economic challenges that Egyptian and Mexican governments go through under the climate change and how differently these two totally different governments responded to these economic challenges. The findings may be useful in strengthening the economic response strategy in developing countries. Climate change is the mother of all externalities: larger, more complex, and more uncertain than any other environmental problem. The greenhouse gas emissions are more severe than any other environmental problem. Companies, farms, every households emit some greenhouse gases. The effects are on agriculture production, energy use, health, and many aspects of nature—which in turn affects human life. The impacts of climate change are of high magnitude, and those in low-income countries who contribute least to climate change are most vulnerable to its negative impacts. Climate change is a long-term problem. Some greenhouse gases have an atmospheric long life-time measured in tens of thousands of years. The quantities of emissions involved are huge. In 2000, carbon dioxide emissions alone (and excluding land use change) were 24 billion metric tons of carbon dioxide. This study used a quadratic programming sector model to assess the integrated impacts of climate change on the agricultural economy of Egypt and Mexico. Results from a dynamic global food trade model were used to update the Egyptian and Mexican sector model and included socio-economic trends and world market prices of agricultural goods. The climate change scenarios generally had small impacts on aggregated economic welfare (sum of Consumer and Producer Surplus or CPS), with the largest reduction of approximately 6 percent. In some climate change scenarios, CPS slightly improved or remained unchanged. These scenarios generally benefited consumers more than producers, as world market conditions reduced the revenue generating capacity of the Egyptian and Mexican agricultural exporters but decreased the costs of imports | ||
| Keywords | ||
| Global Warming; Economy; Egypt; Mexico; Climate Change; Consumer and Producer Surplus or CPS | ||
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