Economy-wide Impacts of Climate Risks
Chapter 5 provides estimates of changes in production for four different crops (aus, aman, boro and wheat) due to various climate risks. Though informative, this information should be supplemented by economic responses to these production shocks (e.g. land and labour reallocation, price effects). These economic adjustments will to some degree mitigate the physical losses predicted. What is described in this section is the development and use of a dynamic computable general equilibrium model to assess the economy-wide impacts from these projected losses. The focus here is on rice production economic impacts only since this dominates agricultural and household food consumption.