Modelling System for Agricultural Impacts of Climate Change (MOSAICC)

The economic component

Climate change will inevitably affect the economy, on a global as well as local scale, through changes in crop yields, water supplies, frequency and intensity of extreme weather events, etc. 

To better understand how national economies might be affected by variations in crop yields due to climate change, MOSAICC integrated a Dynamic Computable General Equilibrium (DCGE) model in its platform. This model provides estimates for several variables, for example commodity prices, imports, taxes, household income and savings.

The main output of the economic model is national GDP changes in response to changes in climatic conditions and agricultural productivity.