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The Economic Consequences of Climate Change

image of The Economic Consequences of Climate Change

This report provides a new detailed quantitative assessment of the consequences of climate change on economic growth through to 2060 and beyond. It focuses on how climate change affects different drivers of growth, including labour productivity and capital supply, in different sectors across the world. The sectoral and regional analysis shows that while the impacts of climate change spread across all sectors and all regions, the largest negative consequences are projected to be found in the health and agricultural sectors, with damages especially strong in Africa and Asia.

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The benefits of policy action

This chapter opens with a discussion on how policy makers can deal with climate change even if future damages and other consequences are not fully known. Then, stylised projections of the AD-DICE model are used to highlight the potential benefits of adaptation and mitigation policies at the global level, and the trade-offs and synergies between both policy options. The chapter closes with an assessment of the avoided damages from mitigation policy action in the ENV-Linkages model, and compares the sectoral distribution of damages and mitigation costs.

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