Macroeconomic damages from climate are 6x larger

Here’s a note from David Carlin about this paper:

A recent paper by the US National Bureau of Economic Research reveals some striking findings about the macroeconomic damages of climate change:

– Macroeconomic damages from climate change are 6x larger than previously assessed
– A 1°C increase in global temperature can cause a 12% decline in world GDP
– Estimated Social Cost of Carbon: $1,056 per ton of CO2, much higher than previous estimates and much higher than the cost of carbon in carbon markets
– A business-as-usual warming scenario could produce a 31% present value welfare loss

These findings underscore the urgent need for robust decarbonization policies, especially for major economies like the United States. The data suggests that unilateral climate action is not only necessary but also cost-effective. It’s a powerful piece in showing the quantitative benefits of climate action for people, profit, and planet!