In the framework of a wider study, co-funded by other sources, which will initially examine the physical and biological impacts of climate change in Cyprus, the proposed project will quantify, for the first time in Cyprus, the expected economic effect of climate change in three important sectors: a) impact on agriculture, b) impact on the energy system and c) impact on human health due to changes in air quality throughout the country. As world climate models predict that climate change will lead to higher temperatures and less rainfall in the Eastern Mediterranean, the sectors addressed in this project are among the most important in terms of potential long-term effects on the economy of the country. The project will exploit assessments of physical, chemical and biological effects to be provided by experts in these fields (i.e. effect on agricultural production, atmospheric concentrations of air pollutants and air pollution-induced mortality and morbidity), and will then assess the economic implications (in monetary terms) associated with these effects. To achieve the objectives stated above, the applicant will collaborate with major national authorities and researchers that deal with agriculture, air quality and energy issues in Cyprus. As these topics have not been adequately addressed for any Mediterranean country up to now, the project's multidisciplinary approach will improve knowledge for this region in general and can contribute to the advance of similar analyses in other South European countries.