Economic Damages from Climate Change

WORKING PAPER

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This working paper clarifies one of the most important aspects in evaluating the SCC in IAMs - the damage function - which maps environmental changes to economic impacts.


To present and predict changes in weather, the scientific community relies on Integrated Assessment Models (IAMs), which model and predict the impact of carbon emissions, greenhouse gas concentrations, and temperature increases on climate systems. IAMs also seek to determine the social cost of carbon (SCC) by giving the negative effects of climate change a monetary value.

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