Abstract. Both climate-change damages and climate-change mitigation will incur economic costs. While the risk of severe damages increases with the level of global warming (Allen et al., 2018; Dell et al., 2014; IPCC, 2014b; Lenton et al., 2008), mitigating costs increase steeply with more stringent warming limits (Allen et al., 2018; IPCC, 2014a; Rogelj et al., 2015). Here we show that the global warming limit that minimizes this century's total economic costs of climate change lies between 1.9 and 2 °C if temperature changes continue to impact national economic growth rates as observed in the past. The result is robust across a wide range of normative assumptions on the valuation of future welfare and inequality aversion. For our study we estimated climate change impacts on economic growth for 186 countries based on recent empirical insights (Burke et al., 2015a), and mitigation costs using a state-of-the-art energy-economy-climate model with a wide range of highly-resolved mitigation options. Our purely economic assessment, even though it omits non-monetary damages, provides support for the international Paris Agreement on climate change. The political goal of limiting global warming to “well below 2 degrees” is thus also an economically optimal goal.
Analyzing climate change impacts on health, energy, water resources, and biodiversity sectors for effective climate change policy in South Korea
