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Climate change attribution and the economic costs of extreme weather events: a study on damages from extreme rainfall and drought

Author

Listed:
  • David J. Frame

    (Victoria University of Wellington)

  • Suzanne M. Rosier

    (National Institute of Water and Atmospheric Research)

  • Ilan Noy

    (Victoria University of Wellington)

  • Luke J. Harrington

    (Victoria University of Wellington
    University of Oxford)

  • Trevor Carey-Smith

    (National Institute of Water and Atmospheric Research)

  • Sarah N. Sparrow

    (University of Oxford
    Oxford e-Research Centre)

  • Dáithí A. Stone

    (National Institute of Water and Atmospheric Research)

  • Samuel M. Dean

    (National Institute of Water and Atmospheric Research)

Abstract

An important and under-quantified facet of the risks associated with human-induced climate change emerges through extreme weather. In this paper, we present an initial attempt to quantify recent costs related to extreme weather due to human interference in the climate system, focusing on economic costs arising from droughts and floods in New Zealand during the decade 2007–2017. We calculate these using previously collected information about the damages and losses associated with past floods and droughts, and estimates of the “fraction of attributable risk” that characterizes each event. The estimates we obtain are not comprehensive, and almost certainly represent an underestimate of the full economic costs of climate change, notably chronic costs associated with long-term trends. However, the paper shows the potential for developing a new stream of information that is relevant to a range of stakeholders and research communities, especially those with an interest in the aggregation of the costs of climate change or the identification of specific costs associated with potential liability.

Suggested Citation

  • David J. Frame & Suzanne M. Rosier & Ilan Noy & Luke J. Harrington & Trevor Carey-Smith & Sarah N. Sparrow & Dáithí A. Stone & Samuel M. Dean, 2020. "Climate change attribution and the economic costs of extreme weather events: a study on damages from extreme rainfall and drought," Climatic Change, Springer, vol. 162(2), pages 781-797, September.
    • Handle: RePEc:spr:climat:v:162:y:2020:i:2:d:10.1007_s10584-020-02729-y
    DOI: 10.1007/s10584-020-02729-y
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    6. Felbermayr, Gabriel & Gröschl, Jasmin & Sanders, Mark & Schippers, Vincent & Steinwachs, Thomas, 2022. "The economic impact of weather anomalies," World Development, Elsevier, vol. 151(C).
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    8. Victor M. Rodríguez-Moreno & Juan Estrada-Ávalos, 2024. "Heavy Rainfall Events in Selected Geographic Regions of Mexico, Associated with Hail Cannons," Forecasting, MDPI, vol. 6(2), pages 1-16, June.
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    13. Rebecca Newman & Ilan Noy, 2023. "The global costs of extreme weather that are attributable to climate change," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
    14. Henrik Thorén & Johannes Persson & Lennart Olsson, 2021. "A pluralist approach to epistemic dilemmas in event attribution science," Climatic Change, Springer, vol. 169(1), pages 1-17, November.
    15. Ahmed, Walid M.A., 2024. "Attention to climate change and eco-friendly financial-asset prices: A quantile ARDL approach," Energy Economics, Elsevier, vol. 136(C).
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    19. Hazem Krichene & Thomas Vogt & Franziska Piontek & Tobias Geiger & Christof Schötz & Christian Otto, 2023. "The social costs of tropical cyclones," Nature Communications, Nature, vol. 14(1), pages 1-13, December.

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