IDEAS home Printed from https://ideas.repec.org/p/ipt/iptwpa/jrc120452.html
   My bibliography  Save this paper

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

Author

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%.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC120452
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jacques Despres & Marko Adamovic, 2020. "Seasonal impacts of climate change on electricity production," JRC Research Reports JRC118155, Joint Research Centre.
    2. Marshall Burke & Solomon M. Hsiang & Edward Miguel, 2015. "Global non-linear effect of temperature on economic production," Nature, Nature, vol. 527(7577), pages 235-239, November.
    3. Bosello, Francesco & Eboli, Fabio & Pierfederici, Roberta, 2012. "Assessing the Economic Impacts of Climate Change. An Updated CGE Point of View," Climate Change and Sustainable Development 121700, Fondazione Eni Enrico Mattei (FEEM).
    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.
    6. Jeremy Martinich & Allison Crimmins, 2019. "Climate damages and adaptation potential across diverse sectors of the United States," Nature Climate Change, Nature, vol. 9(5), pages 397-404, May.
    7. John Reilly & Sergey Paltsev & Ken Strzepek & Noelle Selin & Yongxia Cai & Kyung-Min Nam & Erwan Monier & Stephanie Dutkiewicz & Jeffery Scott & Mort Webster & Andrei Sokolov, 2013. "Valuing climate impacts in integrated assessment models: the MIT IGSM," Climatic Change, Springer, vol. 117(3), pages 561-573, April.
    8. Francesco Bosello & Fabio Eboli & Roberta Pierfederici, 2012. "Assessing the Economic Impacts of Climate Change," Review of Environment, Energy and Economics - Re3, Fondazione Eni Enrico Mattei, February.
    9. Jonathan Pycroft & Jan Abrell & Juan-Carlos Ciscar, 2016. "The Global Impacts of Extreme Sea-Level Rise: A Comprehensive Economic Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(2), pages 225-253, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hjort, Ingrid, 2016. "Potential Climate Risks in Financial Markets: A Literature Overview," Memorandum 01/2016, Oslo University, Department of Economics.
    2. Eshita Gupta & Bharat Ramaswami & E. Somanathan, 2021. "The Distributional Impact of Climate Change: Why Food Prices Matter," Economics of Disasters and Climate Change, Springer, vol. 5(2), pages 249-275, July.
    3. Tol, Richard S.J., 2019. "A social cost of carbon for (almost) every country," Energy Economics, Elsevier, vol. 83(C), pages 555-566.
    4. Richard S. J. Tol & Robert J. Nicholls & Sally Brown & Jochen Hinkel & Athanasios T. Vafeidis & Tom Spencer & Mark Schuerch, 2016. "Comment on ‘The Global Impacts of Extreme Sea-Level Rise: A Comprehensive Economic Assessment’," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(2), pages 341-344, June.
    5. Osamu Nishiura & Makoto Tamura & Shinichiro Fujimori & Kiyoshi Takahashi & Junya Takakura & Yasuaki Hijioka, 2020. "An Assessment of Global Macroeconomic Impacts Caused by Sea Level Rise Using the Framework of Shared Socioeconomic Pathways and Representative Concentration Pathways," Sustainability, MDPI, vol. 12(9), pages 1-12, May.
    6. Frank Vöhringer & Marc Vielle & Philippe Thalmann & Anita Frehner & Wolfgang Knoke & Dario Stocker & Boris Thurm, 2019. "Costs And Benefits Of Climate Change In Switzerland," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-34, May.
    7. Gabriele Standardi, 2023. "Exploring market-driven adaptation to climate change in a general equilibrium global trade model," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(2), pages 1-29, February.
    8. Peter H. Howard & Thomas Sterner, 2017. "Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 197-225, September.
    9. Ciscar, Juan-Carlos & Feyen, Luc & Soria, Antonio & Lavalle, Carlo & Raes, Frank & Perry, Miles & Nemry, Françoise & Demirel, Hande & Rozsai, Máté & Dosio, Alessandro & Donatelli, Marcello & Srivastav, 2014. "Climate Impacts in Europe - The JRC PESETA II Project," MPRA Paper 55725, University Library of Munich, Germany.
    10. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    11. Makoto Tamura & Naoko Kumano & Mizuki Yotsukuri & Hiromune Yokoki, 2019. "Global assessment of the effectiveness of adaptation in coastal areas based on RCP/SSP scenarios," Climatic Change, Springer, vol. 152(3), pages 363-377, March.
    12. Stephen Keen & Timothy M. Lenton & Antoine Godin & Devrim Yilmaz & Matheus Grasselli & Timothy J. Garrett, 2021. "Economists' erroneous estimates of damages from climate change," Papers 2108.07847, arXiv.org.
    13. Roson, Roberto & Damania, Richard, 2016. "Simulating the Macroeconomic Impact of Future Water Scarcity an Assessment of Alternative Scenarios," Conference papers 332687, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. T. Chatzivasileiadis & F. Estrada & M. W. Hofkes & R. S. J. Tol, 2019. "Systematic Sensitivity Analysis of the Full Economic Impacts of Sea Level Rise," Computational Economics, Springer;Society for Computational Economics, vol. 53(3), pages 1183-1217, March.
    15. Tol, Richard S.J., 2024. "A meta-analysis of the total economic impact of climate change," Energy Policy, Elsevier, vol. 185(C).
    16. Richard Tol, 2015. "Bootstraps for Meta-Analysis with an Application to the Impact of Climate Change," Computational Economics, Springer;Society for Computational Economics, vol. 46(2), pages 287-303, August.
    17. Gregory Casey & Soheil Shayegh & Juan Moreno-Cruz & Martin Bunzl & Oded Galor & Ken Caldeira, 2019. "The Impact of Climate Change on Fertility," Department of Economics Working Papers 2019-04, Department of Economics, Williams College.
    18. Theodoros N. Chatzivasileiadis & Marjan W. Hofkes & Onno J. Kuik & Richard S.J. Tol, 2016. "Full economic impacts of sea level rise: loss of productive resources and transport disruptions," Working Paper Series 09916, Department of Economics, University of Sussex Business School.
    19. Anil Markandya, 2017. "State of Knowledge on Climate Change, Water, and Economics," World Bank Publications - Reports 26491, The World Bank Group.
    20. Gosling, Simon & Zaherpour, Jamal & Szewczyk, Wojtek, 2019. "Assessment of global climate change impacts on labour productivity," Conference papers 333068, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    climate change; global warming; sectoral impacts; economics; welfare;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipt:iptwpa:jrc120452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.