Economic models of climate change may have substantially underestimated the costs of continued warming, according to a new study involving UCL researchers.
Published today in the journal Environmental Research Letters, the international team of scientists found that the economic damage could be six times higher by the end of this century than previously estimated.
Projections like this help governments around the world calculate the relative costs and benefits of cutting greenhouse gas emissions. However, prior analysis has shown that the models used may ignore important risks and therefore underestimate the costs.
Currently, most models focus on short-term damage, assuming that climate change has no lasting effect on economic growth, despite growing evidence to the contrary. Extreme events like droughts, fires, heatwaves and storms are likely to cause long-term economic harm because of…