For decades, the economic consensus viewed global warming as a manageable 1–3% tax on global income, but a landmark NBER study has exposed this as a catastrophic miscalculation. By analysing global rather than local temperature shocks, researchers found that a permanent 1°C increase could actually slash global GDP per capita by up to 30%, with damages compounding over time due to permanent hits to productivity and capital accumulation.
On our current path toward 2°C of warming, we aren’t just looking at a mild recession, but a potential 50% collapse in global wealth relative to a non-warming world. This finding suggests our current carbon prices are dangerously low and our policy debates are based on a fundamental misunderstanding of the stakes. Read More
News Credit: EARTH.ORG
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