Dataset Information

Economic aspects of global warming in a post-Copenhagen environment.

ABSTRACT: The science of global warming has reached a consensus on the high likelihood of substantial warming over the coming century. Nations have taken only limited steps to reduce greenhouse gas emissions since the first agreement in Kyoto in 1997, and little progress was made at the Copenhagen meeting in December 2009. The present study examines alternative outcomes for emissions, climate change, and damages under different policy scenarios. It uses an updated version of the regional integrated model of climate and the economy (RICE model). Recent projections suggest that substantial future warming will occur if no abatement policies are implemented. The model also calculates the path of carbon prices necessary to keep the increase in global mean temperature to 2 degrees C or less in an efficient manner. The carbon price for 2010 associated with that goal is estimated to be $59 per ton (at 2005 prices), compared with an effective global average price today of around $5 per ton. However, it is unlikely that the Copenhagen temperature goal will be attained even if countries meet their ambitious stated objectives under the Copenhagen Accord.

SUBMITTER: Nordhaus WD

PROVIDER: S-EPMC2900661 | biostudies-literature | 2010 Jun

REPOSITORIES: biostudies-literature

ACCESS DATA

Publications

Economic aspects of global warming in a post-Copenhagen environment.

Nordhaus William D WD

Proceedings of the National Academy of Sciences of the United States of America 20100614 26

The science of global warming has reached a consensus on the high likelihood of substantial warming over the coming century. Nations have taken only limited steps to reduce greenhouse gas emissions since the first agreement in Kyoto in 1997, and little progress was made at the Copenhagen meeting in December 2009. The present study examines alternative outcomes for emissions, climate change, and damages under different policy scenarios. It uses an updated version of the regional integrated model ...[more]

PMID: 20547856

Similar Datasets

Project description:Empirical evidence suggests that variations in climate affect economic growth across countries over time. However, little is known about the relative impacts of climate change on economic outcomes when global mean surface temperature (GMST) is stabilized at 1.5°C or 2°C warming relative to pre-industrial levels. Here we use a new set of climate simulations under 1.5°C and 2°C warming from the 'Half a degree Additional warming, Prognosis and Projected Impacts' (HAPPI) project to assess changes in economic growth using empirical estimates of climate impacts in a global panel dataset. Panel estimation results that are robust to outliers and breaks suggest that within-year variability of monthly temperatures and precipitation has little effect on economic growth beyond global nonlinear temperature effects. While expected temperature changes under a GMST increase of 1.5°C lead to proportionally higher warming in the Northern Hemisphere, the projected impact on economic growth is larger in the Tropics and Southern Hemisphere. Accounting for econometric estimation and climate uncertainty, the projected impacts on economic growth of 1.5°C warming are close to indistinguishable from current climate conditions, while 2°C warming suggests statistically lower economic growth for a large set of countries (median projected annual growth up to 2% lower). Level projections of gross domestic product (GDP) per capita exhibit high uncertainties, with median projected global average GDP per capita approximately 5% lower at the end of the century under 2°C warming relative to 1.5°C. The correlation between climate-induced reductions in per capita GDP growth and national income levels is significant at the p?<?0.001 level, with lower-income countries experiencing greater losses, which may increase economic inequality between countries and is relevant to discussions of loss and damage under the United Nations Framework Convention on Climate Change.This article is part of the theme issue 'The Paris Agreement: understanding the physical and social challenges for a warming world of 1.5°C above pre-industrial levels'.

Project description:Efforts to mitigate global warming are often justified through calculations of the economic damages that may occur absent mitigation. The earliest such damage estimates were speculative mathematical representations, but some more recent studies provide empirical estimates of damages on economic growth that accumulate over time and result in larger damages than those estimated previously. These heightened damage estimates have been used to suggest that limiting global warming this century to 1.5 °C avoids tens of trillions of 2010 US$ in damage to gross world product relative to limiting global warming to 2.0 °C. However, in order to estimate the net effect on gross world product, mitigation costs associated with decarbonizing the world's energy systems must be subtracted from the benefits of avoided damages. Here, we follow previous work to parameterize the aforementioned heightened damage estimates into a schematic global climate-economy model (DICE) so that they can be weighed against mainstream estimates of mitigation costs in a unified framework. We investigate the net effect of mitigation on gross world product through finite time horizons under a spectrum of exogenously defined levels of mitigation stringency. We find that even under heightened damage estimates, the additional mitigation costs of limiting global warming to 1.5 °C (relative to 2.0 °C) are higher than the additional avoided damages this century under most parameter combinations considered. Specifically, using our central parameter values, limiting global warming to 1.5 °C results in a net loss of gross world product of roughly forty trillion US$ relative to 2 °C and achieving either 1.5 °C or 2.0 °C require a net sacrifice of gross world product, relative to a no-mitigation case, though 2100 with a 3%/year discount rate. However, the benefits of more stringent mitigation accumulate over time and our calculations indicate that stabilizing warming at 1.5 °C or 2.0 °C by 2100 would eventually confer net benefits of thousands of trillions of US$ in gross world product by 2300. The results emphasize the temporal asymmetry between the costs of mitigation and benefits of avoided damages from climate change and thus the long timeframe for which climate change mitigation investment pays off.

Dataset Information

Economic aspects of global warming in a post-Copenhagen environment.

Publications

Economic aspects of global warming in a post-Copenhagen environment.

Similar Datasets

OmicsDI is part of the ELIXIR infrastructure

Tweets