File(s) not publicly available
Climate change costs: Recent advancements in the economic assessment
journal contribution
posted on 2023-06-08, 11:11 authored by Samuel Fankhauser, Richard TolRichard TolClimate change is unique among the consequences of fossil fuel burning in its far reaching impact, both spatially and temporally. Earlier studies estimate the aggregated monetized damage due to climate change at 1.5 to 2.0% of world GDP (for 2 × CO2); the OECD would lose 1.0 to 1.5% of GDP; the developing countries 2.0 to 9.0%, according to these estimates. These figures are not comprehensive and highly uncertain. Newer studies increasingly emphasize adaptation, variability, extreme events, other (non-climate change) stress factors and the need for integrated assessment of damages. As a result, differences in impacts between regions and sectors have increased, the market impacts in developed countries tended to fall, and non-market impacts have become increasingly important. Marginal damages are more interesting from a policy point of view. Earlier estimates range from about US$5 to US$125 per tonne of carbon, with most estimates at the lower end of this range. These figures are based on polynomial functions in the level of climate change, but the rate of change may be equally important, as are the speed of adaptation, restoration and value adjustment. Furthermore, future vulnerability to climate change will be different from current vulnerability. On the whole, the market impacts fall (relatively) with economic growth while the non-market impacts rise (relatively) with growth.
History
Publication status
- Published
Journal
Energy PolicyISSN
0301-4215Publisher
ElsevierExternal DOI
Issue
7Volume
24Page range
665-673Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-04-23Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC