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Methodological aspects of recent climate change damage cost studies

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  • Onno J. Kuik
  • Barbara Bucher
  • Michela Catenacci
  • Etem Karakaya
  • Richard S.J. Tol

    ()
    (Economic and Social Research Institute, Dublin)

Abstract

This paper discusses methodological aspects of recent climate change damage studies. Assessing the total and/or marginal damage costs of environmental change is often difficult and it is certainly difficult in the case of climate change. A major obstacle is the uncertainty on the physical impacts of climate change, especially related to extreme events and so-called ‘low-probability high-impact’ scenarios. The subsequent transposition of physical impacts into monetary terms is also a delicate step, given that climate change impacts involve both market and non-market goods and services, covering health, environmental and social values, and that impacts may be distant in time and space. The complexity of climate change cost assessment thus involves several crucial dimensions, including non-market evaluation, risk and uncertainty, baseline definition, equity and discounting, further elaborated in this paper in the course of the overview of the literature and of the overview and evaluation of the key methodological issues.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/methodologicalaspectswp.pdf
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Bibliographic Info

Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-122.

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Length: 23 pages
Date of creation: Dec 2006
Date of revision: Dec 2006
Publication status: Published, Integrated Assessment Journal, 8 (1), 19-40
Handle: RePEc:sgc:wpaper:122

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Keywords: Climate change damage costs; cost of inaction; methodological aspects; risk and uncertainty; discounting; equity;

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References

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Citations

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Cited by:
  1. Anthoff, David & Rose, Steven K. & Tol, Richard S. J. & Waldhoff, Stephanie, 2011. "Regional and Sectoral Estimates of the Social Cost of Carbon: An Application of FUND," Papers WP375, Economic and Social Research Institute (ESRI).
  2. Anthoff, David & Rose, Steven & Tol, Richard S. J. & Waldhoff, Stephanie, 2011. "The time evolution of the social cost of carbon: An application of fund," Economics Discussion Papers 2011-44, Kiel Institute for the World Economy.
  3. Assoumou, Edi & Maïzi, Nadia, 2011. "Carbon value dynamics for France: A key driver to support mitigation pledges at country scale," Energy Policy, Elsevier, vol. 39(7), pages 4325-4336, July.

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