English references

The world endured its costliest wildfire on record in 2025, its sixth-deadliest heat wave, and four floods or storms that caused at least 1,000 deaths.

Back in 2018, Yale economist William Nordhaus won the Nobel Prize for his work on his Dynamic Integrated Climate-Economy (DICE) model. The idea was to set up a picture of the global economy, add on some estimates of the economic costs of warming with a “damage function,” plus estimates of what climate policy would cost, and all adjusted with a discount term to account for how people value current production more than future production (according to economists, at least). That way you can calculate an “optimal” climate policy in the form of a carbon tax that would precisely compensate for warming damages without burdening the economy too much.

💡 Is our obsession with economic growth leading us to collapse? Economist and research Gaya Herrington joins us to discuss why GDP is a flawed metric, how degrowth can lead to a thriving well-being economy, and why businesses must prioritize resilience over efficiency. Tune in for a critical conversation on reshaping our economic future.

04/17/2024 - Even if CO2 emissions were to be drastically cut down starting today, the world economy is already committed to an income reduction of 19 % until 2050 due to climate change, a new study published in “Nature” finds. These damages are six times larger than the mitigation costs needed to limit global warming to two degrees. Based on empirical data from more than 1,600 regions worldwide over the past 40 years, scientists at the Potsdam Institute for Climate Impact Research (PIK) assessed future impacts of changing climatic conditions on economic growth and their persistence.