Climate Change and Extreme Events: an

We use a dynamic general equilibrium model of the world economy to assess the economic implications of higher vulnerability from extreme meteorological events. In particular, we consider the impact of climate change on ENSO cycles, and the implied variation on regional expected damages, due to extreme events. We analyze how local impacts propagate inside the world economic structure, because of trade relationships among regions. Three effects are taken into account: (1) negative local shocks, determined by loss of resources, (2) changes in demand structure, generated by higher/lower precautionary saving, and (3) variations in regional economic growth paths