Climate change could lead to economic damage as high as $38 trillion a year by 2050. That’s according to a study by the Potsdam Institute for Climate Impact Research published in the journal Nature.
The researchers drew their conclusion after analysing climate simulations and empirical models based on 40 years of data from 1,600 regions around the world.
The study found that nations could lose as much as 13 percent of their median income because of the impact of higher temperatures on agriculture, labour and infrastructure. Severe weather and wildfires, expected to become more frequent as the planet warms, will also lead to increased costs.
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Countries in tropical regions will suffer the highest loss of income, the researchers said. “They are already warmer. Further temperature increases will therefore be most harmful there,” explained co-author Anders Levermann.
This latest study is more comprehensive than previous research, which does not have such extensive regional and sector-specific insights.
The authors call for drastic and immediate reductions in greenhouse gas emissions to avert the worst of the projected crisis and point out that doing nothing will cost far more than the expenses associated with reducing global warming. “Staying on the path we are currently on will lead to catastrophic consequences,” Levermann said.
