A recent study has revealed that economic models have historically underestimated the effects of global heating on wealth. It notes that a 4C temperature increase could lead to a 40% decrease in average individual wealth, much higher than previous models suggested. Even at a target of limiting warming to 2C, average global GDP per capita could still drop by 16%. The researchers enhanced a popular economic model to better account for extreme weather impacts on supply chains, concluding that current integrated assessment models might not be accurately capturing the true economic risks associated with climate change.
Dr. Timothy Neal emphasized the study's findings: rising global temperatures would drastically reshape our economic landscape, with 4C warming expected to reduce GDP per person by 40%.
The research suggests that existing economic models have seriously overlooked key risks associated with climate change, particularly the impacts of extreme weather on global supply chains.
Neal critiqued the reliance on traditional economic models, stating they often underestimate potential losses by not adequately factoring in the far-reaching effects of climate-related disruptions.
Moving forward, the study advocates for integrating enhanced climate change forecasts into economic assessments to better prepare for the consequences of future warming.
Collection
[
|
...
]