Estimating the economic impact of temperature volatility

We revisit the economic impact of climate change by incorporating temperature volatility and extremes. Projected global damages are greater than previously estimated, underscoring the costs of climate inaction.

What you will learn:

• Pioneering research (e.g., Burke, Hsiang, and Miguel 2015 (BHM), Kahn et al. 2020, Kalkuhl, and Wenz 2020) has employed panel econometric techniques to estimate the economic impact of average temperatures. This work is instrumental to our understanding of economic damages from climate change and informs the macroeconomic modelling of physical risks in our Global Climate Service.