The Effect of Climate Changes on Exports and Imports and the Welfare of Urban and Rural Consumers in Iran

The present study seeks to investigate the effect of climate change on exports and imports and the welfare of urban and rural consumers in Iran. For this purpose, the CGE is used as a tool for analysis and The Social Accounting Matrix (SAM) of 1390 as a database. In this study, activity and goods accounts were split into cereal accounts, other agriculture, industry, and mining and services. The results of the model, using three simulation scenarios, showed that as a result of climate change, the production of all sectors excluding industry and mining would be reduced, which would result in higher prices for cereals and lower prices for other activities. In addition, grain exports will decrease in different scenarios and exports of other goods will increase. On the other hand, cereal imports will decrease as imports and other commodities decrease. In this regard, the welfare of urban and rural households will also decrease, which is more pronounced for urban households. According to the results, the macroeconomic effects of these scenarios are the reduction of nominal and real GDP, total absorption and private consumption of households.