The damage climate change will inflict on the world’s economy is likely to have been massively underestimated, according to new research by my colleagues and I which accounts for the full global reach of extreme weather and its aftermath.
To date, projections of how climate change will affect global gross domestic product (GDP) have broadly suggested mild to moderate harm. This in part has led to a lack of urgency in national efforts to reduce greenhouse gas emissions.
However, these models often contain a fundamental flaw – they assume a national economy is affected only by weather in that country. Any impacts from weather events elsewhere, such as how flooding in one country affects the food supply to another, are not incorporated into the models.
