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Methodological aspects of recent climate change damage cost studies

Author

Listed:
  • 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.

Suggested Citation

  • Onno J. Kuik & Barbara Bucher & Michela Catenacci & Etem Karakaya & Richard S.J. Tol, 2006. "Methodological aspects of recent climate change damage cost studies," Working Papers FNU-122, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2006.
    • Handle: RePEc:sgc:wpaper:122
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    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 (IfW Kiel).
    3. Anthoff, David & Rose, Steven & Tol, Richard S. J. & Waldhoff, Stephanie, 2011. "Regional and sectoral estimates of the social cost of carbon: An application of FUND," Economics Discussion Papers 2011-18, Kiel Institute for the World Economy (IfW Kiel).
    4. Dritan Osmani, "undated". "A note on optimal transfer schemes, stable coalition for environmental protection and joint maximization assumption," Working Papers FNU-176, Research unit Sustainability and Global Change, Hamburg University.

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    More about this item

    Keywords

    Climate change damage costs; cost of inaction; methodological aspects; risk and uncertainty; discounting; equity;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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