Climate change is a complex issue. It's not just about rising temperatures. It's about how these changes play out over time and space. This is where things get tricky. Most models used to figure out the economic impact of climate change don't account for these details. They assume climate change happens evenly and steadily. But that's not how it works in the real world. This oversight can lead to big mistakes in estimating the true cost of climate change.

The problem is that these models are missing key pieces of the puzzle. They don't consider how climate change varies from place to place or how it changes over time. This is a big deal. When these factors are ignored, the estimated economic losses are way off. Under a high emissions scenario, the losses could be underestimated by a huge margin. We're talking about trillions of dollars by the end of the century. That's a lot of money that's not accounted for.

The social cost of carbon is a way to put a price tag on the damage caused by each ton of carbon dioxide emitted. It's a crucial number for policymakers. But if the models are wrong, then this number is wrong too. When the models include the variability of climate change, the social cost of carbon goes up significantly. This means that the true cost of climate change is much higher than we thought.

The impact isn't the same everywhere. Some regions and sectors will feel the pain more than others. For example, India, Africa, and China could account for half of the global social cost of carbon. And it's not just about money. Health and other markets will also take a hit. This is why it's so important to get the models right. We need a more complete picture of how climate change affects us.

The bottom line is that we need better models. They should include a more detailed description of climate change than just the global mean temperature. Only then can we truly understand the economic impact of climate change. It's a complex problem, but it's one we need to tackle head-on. The future of our economy depends on it.

Climate Change's Hidden Costs: The Numbers We're Missing

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