Economics: Higher costs of climate change

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1 January 2015

An attempt to reconcile the effects of temperature on economic productivity at the micro and macro levels produces predictions of global economic losses due to climate change that are much higher than previous estimates.

We are already experiencing the economic impacts of climate change — heatwaves, for example, are increasing health costs and employee absenteeism, as well as reducing crop yields. But attempts to calculate the costs of warmer temperatures have produced conflicting results, particularly between estimates at the micro versus the macro scale in wealthy countries.

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Publication | 22 October 2015