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Economic costs of extratropical storms under climate change: an application of FUND
Authors:Daiju Narita  Richard SJ Tol  David Anthoff
Institution:1. Kiel Institute for the World Economy , Düsternbrooker Weg 120, Kiel , 24105 , Germany;2. Economic and Social Research Institute , Whitaker Square, Sir John Rogerson's Quay, Dublin 2 , Ireland;3. Institute for Environmental Studies and Department of Spatial Economics , Vrije Universiteit , De Boelelaan 1081, Amsterdam , the Netherlands;4. Department of Engineering and Public Policy , Carnegie Mellon University , Baker Hall 129, Pittsburgh , PA , 15213 , USA;5. Economic and Social Research Institute, Whitaker Square, Sir John Rogerson's Quay , Dublin 2 , Ireland
Abstract:Extratropical cyclones have attracted some attention in climate policy circles as a possible significant damage factor of climate change. This study conducts an assessment of economic impacts of increased storm activities under climate change with the integrated assessment model FUND 3.5. In the base case, the direct economic damage of enhanced storms due to climate change amounts to US$2.8 billion globally (approximately 38% of the total economic loss of storms at present) at the year 2100, while its ratio to the world GDP is 0.0009%. The paper also shows various sensitivity runs exhibiting up to 3 times the level of damage relative to the base run.
Keywords:climate change  extra tropical storms  economic impact
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