The costs of climate change

Professor Ilan Noy and Belinda Storey discuss how extreme events show that existing economic models underestimate the costs of climate change.

May 2021

Te Herenga Waka—Victoria University of Wellington researchers are using 'bottom-up' analysis of extreme events to estimate the current and future costs of climate change. These methods contrast sharply with the 'top-down' approach of estimating the social cost of carbon using integrated assessment models.

Professor Ilan Noy (Chair in the Economics of Disasters and Climate Change, School of Economics and Finance) and Belinda Storey (Managing Director, Climate Sigma) discuss how the latest understanding of extreme events in challenging existing estimates of the economic impacts of climate change including an Aotearoa case study on insurance retreat.