The persistence of shocks in GDP and the estimation of the potential economic costs of climate change
Most impact functions of IAMs implicitly assume that climate change impacts have no persistence. IAMs projections of the costs of climate change are highly sensitive to this assumption. Current projections of climate change costs could be highly underestimated. A simple modification of the typical damage function in IAMs is proposed to include the effects of impact persistence.
persistence of shocks economic costs of climate change integrated assessment model adaptation