This paper quantifies the global impact of climate change from several extreme events: local storms, heat waves, cold spells, floods, and droughts…. [C]limate change is calculated to increase the damages from these five extreme events by between $11 and $16 billion [sic] a year by 2100…. Summing the damages in this report with tropical cyclone and severe storm damages from the literature suggests that climate change may increase the overall damage from extreme events by $84 billion or 0.015 percent of world GDP.
Yes, two ‘leading’ economists, Robert Mendelsohn and Gokay Saher, actually wrote an entire paper for the World Bank that came to such a conclusion. It would be laughable were the potential consequences of such misanalysis not so serious.
For the record, when actual climate scientists and agricultural experts look at these and other damages they naturally come to a very different view (see Scientists find “net present value of climate change impacts” of $1240 TRILLION on current emissions path, making mitigation to under 450 ppm a must).
Coincidentally, another just-released study, “The Last Drop: Climate Change and the Southwest Water Crisis,” that actually looks in some detail at the scientific literature for just one region, finds that drought and reduced precipitation in the U.S. SW alone could cost up to $1 trillion by century’s end.
I don’t know who is going to be disdained more by future generations devastated by humanity’s apparent inability to preserve a livable climate — the fossil-fuel-friendly World Bank or the why-bother-reading-the-scientific-literature economics community.
For the umpteenth time, Memo to economists: Please read the scientific literature before opining on the impacts of global warming.
You would think that in any rational world, an “ultimate damage” analysis by the World Bank on “The global impact of climate change on extreme events” including droughts would include multiple citations to the significant scientific literature on droughts and the impacts of reduced precipitation. Or even cite one damn paper.
You would be wrong. The mainstream economics community has been taken over by a form of circular benchmarking, a self-delusion where everybody cites each other and ignores the scientific literature. I would note that the Mendelsohn and Saher cite multiple articles by proponents of traditional cost-benefit analysis for climate impacts, they don’t cite Harvard economist Martin Weitzman’s well-known work calling such an approach into question in this arena (see my post Harvard economist: Climate cost-benefit analyses are “unusually misleading,” warns colleagues “we may be deluding ourselves and others”).
I single out droughts here for one particular reason. I was chatting recently with one of the World Bank’s leading experts on development, someone who ran one of the in-country offices of a big developing country. I was commenting to him about the devastating impact of the intense deluges that hit developing countries in the past year. He told me he thought that the impact of extended drought was far worse than deluges because they lasted so long and went to the heart of the country’s ability to feed itself.
I believe that Dust-Bowlification — combined with the impact on food insecurity of Dust-Bowlification combined with other extreme events — is the single biggest impact that climate change is likely to have on most people for most of this century (until sea level rise gets serious in the latter decades).
Let me run through some of the scientific literature that Mendelsohn and Saher — and whoever reviewed the paper at the World Bank — didn’t deem worthy enough to include in their paper on “The global impact of climate change on extreme events” — even though they saw fit to cite their own work three times and Roger Pielke Jr.’s five times.
Read the rest of this post »