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Concept
Economic analysis of climate change
Résumé
The economic analysis of climate change explains how economic thinking, tools and techniques are applied to calculate the magnitude and distribution of damage caused by climate change. It also informs the policies and approaches for mitigation and adaptation to climate change from global to household scales. This topic is also inclusive of alternative economic approaches, including ecological economics and degrowth.
Economic analysis of climate change is considered challenging as it is a long-term problem and has substantial distributional issues within and across countries. Furthermore, it engages with uncertainty about the physical damages of climate changes, human responses, and future socioeconomic development.
Sub-topics within the economic analysis concept are the economic impacts of climate change, as well as the economics of climate change mitigation.
Climate change scenario and Climate change mitigation scenarios
Effects of climate change may last a long time, such as sea level rise which will not be reversed for thousands of years. The long time scales and uncertainty associated with global warming have led analysts to develop "scenarios" of future environmental, social and economic changes. These scenarios can help governments understand the potential consequences of their decisions.
One of the economic aspects of climate change is producing scenarios of future economic development. Future economic developments can, for example, affect how vulnerable society is to future climate change, what the future impacts of climate change might be, as well as the level of future GHG emissions.
In scenario analysis, scenarios are developed that are based on differing assumptions of future development patterns. An example of this are the shared socioeconomic pathways produced by the Intergovernmental Panel on Climate Change (IPCC). These project a wide range of possible future emissions levels.
Some analysts have developed scenarios that project a continuation of current policies into the future.
Source officielle
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