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How much will climate change drag down the economy?

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Yale Climate Connections or enjoy below:

🗞️ Driving the news: Economists are fiercely debating the economic impact of climate change
• While some predict one-time costs from extreme weather, others foresee a persistent economic drag
• Most agree that damages will be significant, with climate economists estimating severe long-term impacts

🔭 The context: Hurricane Otis's devastation of Acapulco illustrates the potential economic harm of climate change
• The storm destroyed much of the city's infrastructure, highlighting how extreme weather can cripple economies
• The broader academic debate focuses on whether such events cause temporary setbacks or sustained economic slowdowns

🌍 Why it matters for the planet: Climate change is projected to cause tens to hundreds of trillions of dollars in lost economic growth by the end of the century
• The costs of inaction far outweigh the expenses of reducing carbon emissions, making climate solutions economically sensible
• Persistent economic damages also threaten to exacerbate inequalities, particularly affecting poorer, hotter regions

⏭️ What's next: The global economy faces significant risks if climate action is insufficient
• Meeting the Paris Agreement targets could stabilize economic impacts by mid-century
• However, without ambitious climate policies, economies worldwide may struggle with enduring damages

💬 One quote: "Climate damages are always going to be underestimated, some things we just can’t quantify," stated Gernot Wagner, Columbia climate economist

📈 One stat: An April 2024 study estimates that climate damage costs by 2050 will be six times larger than the cost of reducing carbon pollution in line with the Paris climate agreement

Click for more news covering the latest on climate change

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