Demographic models for projections of social sector demand

Includes bibliography

Structural change and productivity growth, 20 years later: old problems, new opportunities

Includes bibliography

Managing in the public sector for investment and growth

Includes bibliography

An econometric analysis of private-sector investment in Brazil

Includes bibliography

An assessment of the economic and social impacts of climate change on the energy sector in the Caribbean

The present report assesses the economic and social impacts of climate change on the energy sector in Antigua and Barbuda, the Bahamas, Barbados, Belize, Cuba, Dominica, the Dominican Republic, Haiti, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname, and Trinidad and Tobago. In the study, the Artificial Neural Network methodology was employed to model the relationship between climate change and energy demand. The viability of the actions proposed were assessed using cost benefit analyses based on models from the National Renewable Energy Laboratory (NREL) of the United States of America.

The impact of climate change on the tourism sector in the Caribbean

The main aim of this study is to estimate the economic impact of climate change on nine countries in the Caribbean basin: Aruba, Barbados, Dominican Republic, Guyana, Jamaica, Montserrat, Netherlands Antilles, Saint Lucia and Trinidad and Tobago. A typical tourism demand function, with tourist arrivals as the dependent variable, is used in the analysis. To establish the baseline, the period under analysis is 1989-2007 and the independent variables are destination country GDP per capita and consumer price index, source country GDP, oil prices to proxy transportation costs between source and destination countries. At this preliminary stage the climate variables are used separately to augment the tourism demand function to establish a relationship, if any, among the variables. Various econometric models (single OLS models for each country, pooled regression, GMM estimation and random effects panel models) were considered in an attempt to find the best way to model the data. The best fit for the data (1989-2007) is the random effects panel data model augmented by both climate variables, i.e. temperature and precipitation. Projections of all variables in the model for the 2008-2100 period were done using forecasting techniques. Projections for the climate variables were undertaken by INSMET. The cost of climate change to the tourism sector was estimated under three scenarios: A2, B2 and BAU (the mid-point of the A2 and B2 scenarios). The estimated costs to tourism for the Caribbean subregion under the three scenarios are all very high and ranges from US$43.9 billion under the B2 scenario to US$46.3 billion under the BAU scenario.

Development strategies for the information and communications technology sector in the Caribbean: A global perspective

This occasional paper examines the experiences of three leading global centres of the ICT industry – India, Silicon Valley, and Estonia – to reflect on how the lessons of these models can be applied to the context of countries in the Caribbean region.Several sectors of the technology industry are considered in relation to the suitability for their establishment in the Caribbean. Animation is an area that is showing encouraging signs of development in several countries, and which offers some promise to provide a significant source of employment in the region. However, the global market for animation production is likely to become increasingly competitive, as improved technology has reduced barriers to entry into the industry not only in the Caribbean, but around the world. The region’s animation industry will need to move swiftly up the value chain if it is to avoid the downsides of being caught in an increasingly commoditized market. Mobile applications development has also been widely a heralded industry for the Caribbean. However, the market for consumer-oriented smartphone applications has matured very quickly, and is now a very difficult sector in which to compete. Caribbean mobile developers would be better served to focus on creating applications to suit the needs of regional industries and governments, rather than attempting to gain notice in over-saturated consumer marketplaces such as the iTunes App Store and Google Play. Another sector considered for the Caribbean is “big data” analysis. This area holds significant potential for growth in coming years, but the Caribbean, which is generally considered to be a datapoor region, currently lacks a sufficient base of local customers to form a competitive foundation for such an industry. While a Caribbean big data industry could plausibly be oriented toward outsourcing, that orientation would limit positive externalities from the sector, and benefits from its establishment would largely accrue only to a relatively small number of direct participants in the industry. Instead, development in the big data sector should be twinned with the development of products to build a regional customer base for the industry. The region has pressing needs in areas such as disaster risk reduction, water resource management, and support for agricultural production. Development of big data solutions – and other technology products – to address areas such as these could help to establish niche industries that both support the needs of local populations, and provide viable opportunities for the export of higher-value products and services to regions of the world with similar needs.

An assessment of the economic impact of climate change on the coastal and human settlements Sector in Barbados

This study assesses the potential economic impact of climate change on coastal human settlements in the Caribbean, with specific reference to Barbados, and evaluates the costs and benefits of undertaking various adaptation strategies. The aim is to assist Caribbean territories in developing the strategies and capacity needed to deal with the potential impact of severe weather events that are anticipated to occur with increased frequency and intensity as a result of climate change. Some of the key anticipated manifestations of climate change for the Caribbean include elevated air and sea-surface temperatures, sea-level rise, possible changes in extreme events and a reduction in freshwater resources.This research focuses on how human settlements distributed along the coast of Guyana, especially those in low elevation coastal zones (LECZ)are affected by these impacts. Focusing on three potential transmission sources - sea-level rise, stronger storm hazards and increased precipitation – the study considers the vulnerability of populations in the LECZ areas and estimates the overall threat posed by climate change to coastal populations and infrastructure. Vulnerability to climate change (measured as exposed assets) was estimated for four emission scenarios as outlined by the Special Report on Emissions Scenarios (SRES), namely the A1, A2, B1 and B2 scenarios for the period 2010 to 2100 and as detailed by the Intergovernmental Panel on Climate Change (IPCC), using global circulation models (GCM) and storm surge hazard maps.

An assessment of the economic impact of climate change on the Agriculture Sector in Jamaica

The agricultural sector‟s contribution to GDP and to exports in Jamaica has been declining with the post-war development process that has led to the differentiation of the economy. In 2010, the sector contributed 5.8% of GDP, and 3% to the exports (of goods), but with 36% of employment, it continues to be a major employer. With a little less than half of the population living in rural communities, agricultural activities, and their linkages with other economic activities, continue to play an important role as a source of livelihoods, and by extension, the economic development of the country. Sugar cane cultivation has, with the exception of a couple of decades in the twentieth century when it was superseded by bananas, dominated the agricultural export sector for centuries as the source of the raw materials for the manufacture of sugar for export. In 2005, sugar cane itself accounted for 6.4% of the sector‟s contribution to GDP, and 52% of the contribution of agricultural exports to GDP. Production for the domestic market has long been the larger subsector, organized around the production of root crops, especially yams, vegetables and condiments. To analyse the potential impact of climate change on the agricultural sector, this study selected three important crops for detailed examination. In particular, the study selected sugar cane because of its overwhelming importance to the export subsector of agriculture, and yam and escallion for both their contribution to the domestic subsector as well as the preeminent role yams and escallion play in the economic activities of the communities in the hills of central Jamaica, and the plains of the southwest respectively. As with other studies in this project, the methodology adopted was to compare the estimated values of output on the SRES A2 and B2 Scenarios with the value of output on a “baseline” Business As Usual (BAU), and then estimate the net benefits of investment in the relevant to climate change for the selected crops. The A2 and B2 Scenarios were constructed by applying forecasts of changes in temperature and precipitation generated by INSMET from ECHAM inspired climate models. The BAU “baseline” was a linear projection of the historical trends of yields for each crop. Linear models of yields were estimated for each crop with particular attention to the influence of the two climate variables – temperature and precipitation. These models were then used to forecast yields up to 2050 (table1). These yields were then used to estimate the value of output of the selected crop, as well as the contribution to overall GDP, on each Scenario. The analysis suggested replanting sugar cane with heat resistant varieties, rehabilitating irrigation systems where they existed, and establishing technologically appropriate irrigation systems where they were not for the three selected crops.

An assessment of the economic impact of climate change on the coastal and marine sector in the British Virgin Islands

Owing to their high vulnerability and low adaptive capacity, Caribbean islands have legitimate concerns about their future, based on observational records, experience with current patterns and consequences of climate variability, and climate model projections. Although emitting less than 1% of global greenhouse gases, islands from the region have already perceived a need to reallocate scarce resources away from economic development and poverty reduction, and towards the implementation of strategies to adapt to the growing threats posed by global warming (Nurse and Moore, 2005). The objectives of this Report are to conduct economic analyses of the projected impacts of climate change to 2050, within the context of the IPCC A2 and B2 scenarios, on the coastal and marine resources of the British Virgin Islands (BVI). The Report presents a valuation of coastal and marine services; quantitative and qualitative estimates of climate change impacts on the coastal zone; and recommendations of possible adaptation strategies and costs and benefits of adaptation. A multi-pronged approach is employed in valuing the marine and coastal sector. Direct use and indirect use values are estimated. The amount of economic activity an ecosystem service generates in the local economy underpins estimation of direct use values. Tourism and fisheries are valued using the framework developed by the World Resources Institute. Biodiversity is valued in terms of the ecological functions it provides, such as climate regulation, shoreline protection, water supply erosion control and sediment retention, and biological control, among others. Estimates of future losses to the coastal zone from climate change are determined by considering: (1) the effect of sea level rise on coastal lands; and (2) the effect of a rise in sea surface temperature (SST) on coastal waters. Discount rates of 1%, 2% and 4% are employed to analyse all loss estimates in present value terms. The overall value for the coastal and marine sector is USD $1,606 million (mn). This is almost 2% larger than BVI’s 2008 GDP. Tourism and recreation comprise almost two-thirds of the value of the sector. By 2100, the effects of climate change on coastal lands are projected to be $3,988.6 mn, and $2,832.9 mn under the A2 and B2 scenarios respectively. In present value terms, if A2 occurs, losses range from $108.1-$1,596.8 mn and if B2 occurs, losses range from $74.1-$1,094.1 mn, depending on the discount rate used. Estimated costs of a rise in SST in 2050 indicate that they vary between $1,178.0 and $1,884.8 mn. Assuming a discount rate of 4%, losses range from $226.6 mn for the B2 scenario to $363.0 mn for the A2 scenario. If a discount rate of 1% is assumed, estimated losses are much greater, ranging from $775.6-$1,241.0 mn. Factoring in projected climate change impacts, the net value of the coastal and marine sector suggests that the costs of climate change significantly reduce the value of the sector, particularly under the A2 and B2 climate change scenarios for discount rates of 1% and 2%. In contrast, the sector has a large, positive, though declining trajectory, for all years when a 4% discount rate is employed. Since the BVI emits minimal greenhouse gases, but will be greatly affected by climate change, the report focuses on adaptation as opposed to mitigation strategies. The options shortlisted are: (1) enhancing monitoring of all coastal waters to provide early warning alerts of bleaching and other marine events; (2) introducing artificial reefs or fish-aggregating devices; (3) introducing alternative tourist attractions; (4) providing retraining for displaced tourism workers; and (5) revising policies related to financing national tourism offices to accommodate the new climatic realities. All adaptation options considered are quite justifiable in national terms; each had benefit-cost ratios greater than 1.