 Accounting for Biodiversity Costs from Climate Change in Integrated Assessment ModelsKevin R. Kaushal and Stale Navrud International Review of Environmental and Resource Economics, 2023, vol. 16, issue 3-4, 467-504 Abstract: Climate change will have a major negative impact on global biodiversity. Our review of integrated assessment models (IAMs) show that biodiversity damage costs are not included or incompletely captured. We provide improved damage cost estimates of species loss based on (i) a recent global biophysical assessment of impacts on species, (ii) transfer of economic values from a global Delphi contingent valuation study of households' willingness-to-pay, and (iii) benefit transfer techniques. The new damage cost estimates are implemented in FUND 3.9. The numerical simulations suggest that both the expected physical global species loss and the associated damage costs are higher than initially predicted. Hence, IAMs with incomplete assessment and valuation of species loss could greatly underestimate the social cost of carbon, and lead to underinvestment in greenhouse gas mitigation measures. Even if the knowledge is incomplete, IAMs should include nonmarket environmental damage costs scenarios to better inform climate policy designs. Keywords: Social costs of carbon; integrated assessment models; Delphi method; contingent valuation; climate change; benefit transfer; biodiversity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:now:jirere:101.00000149 Access Statistics for this article More articles in International Review of Environmental and Resource Economics from now publishers |
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