Climate change will cost US$1.7 trillion per year by 2025 if the world doesn’t take immediate action, according to a New York University survey of 738 economists.
The estimated price tag will rise to US$30 trillion per year by 2075, equating to 5% of projected GDP, if the current warming trend continues.
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Their damage estimates rose precipitously as warming intensifies, topping US$140 trillion annually at a 5°C increase and US$730 trillion at a 7°C increase.
Global warming will also exacerbate income inequality between richer and poorer countries and also within most of them, between the lower third of households by household income and the upper third.
Economists predict rapid expansion of clean energy technologies, estimating that more than 50% of the global energy mix will consist of zero-emission technologies by 2050, from the current share of 10%, with prices expected to continue dropping.
There was consensus that ambitious emissions reductions are likely to cost less than the expected damages from climate change, the university’s Institute for Policy Integrity said.
“Costs are often cited as a reason to delay or avoid strong action on climate change, but this survey of hundreds of expert economists suggests that the weight of evidence is on the side of rapid action,” researchers noted.
“This survey reveals a clear consensus that immediate and meaningful efforts to reduce emissions are needed to limit the enormous economic risks of climate change. Policymakers should heed these findings.”