The Economic Impact of Climate Change
Article first published online: 17 MAY 2010
© 2010 die Autoren Journal compilation © 2010, Verein für Socialpolitik und Blackwell Publishing Ltd.
Perspektiven der Wirtschaftspolitik
Volume 11, Issue Supplement s1, pages 13–37, May 2010
How to Cite
Tol, R. S. J. (2010), The Economic Impact of Climate Change. Perspektiven der Wirtschaftspolitik, 11: 13–37. doi: 10.1111/j.1468-2516.2010.00326.x
- Issue published online: 17 MAY 2010
- Article first published online: 17 MAY 2010
Abstract: This paper surveys the literature on the economic impact of climate change. Different methods have been used to estimate the impact of climate change on human welfare. Studies agree that there are positive and negative impacts. In the short term, positive impacts may dominate, but these are largely sunk. In the longer term, there are net negative impacts. Poorer people tend to be more vulnerable to climate change. There is a trade-off between development policy and climate policy. Estimated aggregate impacts are not very large, but they are uncertain and incomplete. Estimates of the marginal impacts suggest that greenhouse gas emissions should be taxed, and that the emission reduction targets announced by politicians are probably too ambitious.