The physical and economic impacts of climate warming in the Mackenzie
River Valley, Northwest Territories, Canada are estimated using a comb
ination of stochastic modelling, econometric-modelling and input-outpu
t analysis. The attempt was to illustrate the utility of using analyti
cal models for long-term impact assessment as well as to estimate the
potential impacts from projected climate warming in the region. A scen
ario approach, based on three global circulation models, was used, wit
h an emphasis on modelling climate variability, river ice conditions a
nd economic impacts. The transportation system was used as a central f
ocus linking the physical and socio-economic components. Despite the s
ignificant warming projected for the region, results show the economic
impacts from changes in transportation to be relatively minor, with t
he greatest changes being in the tertiary, or service, sector.