The Full Costs of Climate Change

The Full Costs of Climate Change

Client/Allowance

European Commission

Period: 01.12.2008 – 31.07.2011

There is increasing interest in the economics of climate change to inform policy on a) long-term targets, b) the costs of inaction, and c) the costs and benefits of adaptation. The objectives of this project were to advance knowledge across all three areas, i.e. the full economic costs of climate change. To this end, various tasks were performed. First, consistent climate change and socio-economic scenarios were identified and developed. Second, by using bottom-up modelling the ‘costs of inaction’ as well as the costs and benefits of adaptation was quantified for these scenarios in the EU and other major negotiator countries, e.g. the US and China. Third, mitigation costs and benefits were updated with respect to medium and long-term GHG emission reduction targets. To bring all the information together policy relevant output, including information on physical and economic effects, was provided. The part of ZEW included the development of the computable general equilibrium model PACE in order to integrate endogenous technological change. For this purpose, knowledge flows were identified and capitalized. Endogenous technological change was incorporated into the model where technology externalities are taken into account.

Project members

Andreas Löschel

Andreas Löschel

Project Coordinator
Research Associate

To the profile
Sebastian Voigt

Sebastian Voigt

Deputy

To the profile
Client/Allowance
European Commission, Brüssel, BE
Cooperation partner
Catholic University of Leuven, Leuven, BE // Potsdam Institute for Climate Impact Research (PIK), Potsdam, DE // University of East Anglia, Norwich, UK // Fondazione Eni Enrico Mattei (FEEM), Milan, IT // The Economic and Social Research Institute (ESRI), Dublin, IE // European Commission Joint Research Centre - Institute for Prospective Technological Studies, Sevilla, ES // Stockholm Environment Institute, Oxford, UK // Danish Meteorological Institute, Kopenhagen, DK // University of Southampton, Southampton, UK // Institute of Communication and Computer Systems, Zografou, GR // AEA Technology, Oxon, UK // Universidad Politécnica de Madrid, Madrid, ES // Paul Watkiss Associates, Oxford, UK // London School of Hygiene and Tropical Medicine, London, UK // University of the Aegean, Mytilene, Lesvos, GR // Charles University, Prag, CZ // The Energy and Resources Institute, New Delhi, IN // Energy Research Institute, Beijing, CN // Université de Grenoble 2, Grenoble, FR // Metroeconomica, Bath, UK // International Institute for Applied Systems Analysis, Laxenburg, AT