The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Anthony Bonen, Prakash Loungani, Willi Semmler, and Sebastian Koch
INTERNATIONAL MONETARY FUND
We propose a macroeconomic model to assess optimal public policy decisions in
the the face of competing funding demands for climate change action versus
traditional welfare-enhancing capital investment. How to properly delineate the
costs and benefits of traditional versus adaption-focused development remains an
open question. The paper places particular emphasis on the changing level of
risk and vulnerabilities faced by developing countries as they allocate investment
toward growth strategies, adapting to climate change and emissions mitigation.