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Economic analysis of selected climate impacts. JRC PESETA IV project –Task 14

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Abstract

Climate change damages the capital stock, affects economic production and the welfare of households in regions suffering the impact or that are economically linked with them. These economic effects have been quantified for seven climate impact categories: river floods, coastal floods, agriculture, energy supply, droughts, windstorms and human mortality. Due to the limited coverage of climate impacts, the assessment does not evaluate the full economic impacts of climate change in Europe. Human mortality from extreme heat dominates the economic climate impacts, yet its contribution is strongly dependent on the monetary valuation of human lives. The magnitude of welfare losses in the Southern regions (Central Europe South and Southern Europe) is estimated to be several times larger compared to that in the North of Europe. Limiting warming to 2oC would halve economic impacts compared to a 3oC scenario, while achieving the stringent Paris target of 1.5oC would lower welfare loss by 75%.

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  • Wojtek Szewczyk & Luc Feyen & Anca Matei & Juan Carlos Ciscar & Eamonn Mulholland & Antonio Soria, 2020. "Economic analysis of selected climate impacts. JRC PESETA IV project –Task 14," JRC Research Reports JRC120452, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc120452
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC120452
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    4. Wojciech Szewczyk & Juan Carlos Ciscar Martinez & Ignazio Mongelli & Antonio Soria Ramirez, 2018. "JRC PESETA III Project: Economic integration and spillover analysis," JRC Research Reports JRC113810, Joint Research Centre.
    5. Elodie Blanc, 2017. "Aggregation of Gridded Emulated Rainfed Crop Yield Projections at the National or Regional Level," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(2), pages 112-127, December.
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    1. Avgousti, Aris & Caprioli, Francesco & Caracciolo, Giacomo & Cochard, Marion & Dallari, Pietro & Delgado-Téllez, Mar & Domingues, João & Ferdinandusse, Marien & Filip, Daniela & Nerlich, Carolin & Pra, 2023. "The climate change challenge and fiscal instruments and policies in the EU," Occasional Paper Series 315, European Central Bank.

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    Keywords

    climate change; global warming; sectoral impacts; economics; welfare;
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