Supporting Climate Resilient Economic Development in Georgia – Application of the Model to Analyze the Economy-Wide Impacts of Climate Change Adaptation

Climate change is one of the most significant and urgent problems for the environmental and socioeconomic development not only in Georgia. Several climate trends in Georgia have already changed during recent decades, e. g., the frequency and severity of extreme weather events like increased temperatures, droughts and precipitation.

Knowledge of the economy-wide effects of climate change and the implementation of adaptation measures is important for Georgia in order to set up an appropriate adaptation strategy that focusses on all economic sectors. For that, the macroeconomic model model has been developed to ensure informed policy-making on adaption to climate change in Georgia.

This national report on the application of the model in Georgia comprehensively outlines the CRED approach of modelling economy-wide impacts of climate change and adaptation. It first provides a general understanding of macroeconomic models, and the impacts of climate change in Georgia. It then proceeds with integrating both the economic and climatic dimensions in the model and conducts exemplary analyses of adaptation options in the agriculture and tourism/infrastructure sectors.