In a recent Harvard and NBER study, economists evaluated what impact the climate crisis is expected to have on the global economy. “This paper estimates that the macroeconomic damages from climate change are six times larger than previously thought. A 1 degree Celsius increase in global temperature leads to a 12% decline in world GDP.” They summarize, “A business-as-usual warming scenario leads to a present value welfare loss of 31%. These are multiple orders of magnitude above previous estimates and imply that unilateral decarbonization policy is cost effective for large countries like the United States.” (1)
The study continues, “Climate change implies precipitous declines in output, capital and consumption that reach 47% by 2100. These magnitudes are comparable to the economic damage caused by the 1929 Great Depression, but experienced permanently.”
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