Comparing forecasts of the global impacts of climate change

Abstract

This paper utilizes the predictions of several Atmosphere-Ocean General Circulation Models and the Global Impact Model to create forecasts of the global market impacts from climate change. The forecasts of market impacts in 2100 vary considerably depending on climate scenarios and climate impact sensitivity. The models do concur that tropical nations will be hurt, temperate nations will be barely affected, and high latitude nations will benefit. Although the size of these effects varies a great deal across models, the beneficial and harmful effects are offsetting, so that the net impact on the globe is relatively small in almost all outcomes. Looking only at market impacts, the forecasts suggest that while the global net benefits of abatement are small, the distribution of damages suggests a large equity problem that could be addressed through a compensation program. The large uncertainty surrounding these forecasts further suggests that continued monitoring of both the climate and impacts is worthwhile.