Researchers from the University of Cambridge and Boston Consulting Group (BCG) offer a strong case for investing in climate mitigation and adaptation to avoid damage to the global economy.
Researchers from the University of Cambridge and Boston Consulting Group (BCG) offer a strong case for investing in climate mitigation and adaptation to avoid damage to the global economy.
Research on climate change impacts across all regions and sectors is expanding rapidly
Kamiar Mohaddes
Too Hot to Think Straight, Too Cold to Panic, a new report from Cambridge Judge Business School, BCG and the University of Cambridge’s climaTraces Lab argues that failing to invest comes with significant economic consequences.
Allowing global warming to reach 3°C by 2100 could reduce cumulative economic output by 15% to 34%. Alternatively, investing 1% to 2% in mitigation and adaptation would limit warming to 2°C, reducing economic damages to 2% to 4%. This net cost of inaction is equivalent to 11% to 27% of cumulative GDP—equivalent to three times global health care spending, or eight times the amount needed to lift the world above the global poverty line by 2100.
“Research on climate change impacts across all regions and sectors is expanding rapidly,” said Kamiar Mohaddes, an Associate Professor in Economics and Policy at Cambridge Judge Business School and Director of the climaTRACES Lab.
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