Abstract
Nordhaus (1991), Cline (1992), Fankhauser (1992), and Titus (1992) have published comprehensive estimates of annual climate change damages to the United States in about 2060 that vary from $55 billion to $111 billion ($1990). The estimates are comprehensive because they address market and nonmarket impacts. They based their estimates on different assumptions about the rates of climate change and sea level rise, rates of return on investment, and changes in population and income. In addition, many of the damage estimates, although reported for a 2.5–3.0 °C warming, were based on studies that assumed higher rates of warming. Thus, these studies may have overestimated damages associated with a 2.5–3.0 °C warming. In this paper, the results of these studies were standardized for a 2.5 °C warming, a 50-cm sea level rise, 1990 income and population, and a 4% real rate of return on investments. After standardization, the total damage estimates range from $42.3 billion to $52.8 billion, slightly less than 1% of United States GNP in 1990. Yet, within individual sectors, such as agriculture and electricity, standardized damages differ by more than an order of magnitude. In addition, a significant amount of speculation underlies the damage estimates. Thus, the small range of total standardized damages and apparent agreement about the magnitude of such damages should be interpreted with caution.
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Smith, J.B. Standardized estimates of climate change damages for the United States. Climatic Change 32, 313–326 (1996). https://doi.org/10.1007/BF00142467
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DOI: https://doi.org/10.1007/BF00142467