The economics of climate change in Central America: summary 2010

This document is a product of the project 'The Economics of Climate Change in Central America' which aims to conduct an economic impact study on the effects of climate change in Central America based on various development scenarios and emissions trajectories, estimating the potential costs and benefits of a response of inaction (i.e. a business-as usual approach) or of public-policy adaptation and mitigation options to prevent or reduce adverse impacts, such as droughts, cyclones and the El Niño Southern Oscillation (ENSO), which seriously affect the region.

The study projects growth trajectories for each national economy as a whole and for major economic sectors. The impact of climate change on key sectors or areas of concern, such as agricultural yields and water availability and demand, is assessed. The costs of these impacts are estimated in order to establish the possible changes in the trajectory of economic development as affected by climate change.