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Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:49:55am WEST

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Daily Overview

Session

Egg-Timer: Climate Policy and Integrated Assessment 2
Location: D-111
Session Chair: Majid Ebadi Arablu, Wageningen University and Research

Presentation 3

Impacts of Climate Damages and Mitigation on Structural Transformation

Johannes Koch¹, Marian Leimbach³, Marcos Marcolino³, Ramiro Parrado²

1: Potsdam Institue for Climate Impact Research, Germany; 2: CMCC; 3: no affiliation

We develop a global structural transformation integrated assessment model to study the impacts of climate change and mitigation policies on the sectoral reallocation of economic activity. The model integrates climate-economy interactions, sectoral heterogeneity in climate vulnerabilities and mitigation capabilities, and sectoral frictions. We show that climate damages generate large and uneven welfare losses and systematically slow structural transformation in low-income regions by trapping labor in agriculture and, in some cases, reversing service-sector expansion. Climate mitigation improves welfare relative to a damages-only scenario but shifts economic activity away from manufacturing and, in developing regions, toward agriculture, highlighting a tension between emissions reduction and development. Mobility frictions strongly mediate these effects: reducing labor and capital adjustment costs yields sizable welfare gains and accelerates structural transformation without significantly affecting emissions. Our results suggest that mobility-enhancing policies are critical complements to climate mitigation, helping align climate objectives with long-run development outcomes.