"Climate change must be treated as a potentially existential threat to the economy, rather than an issue which is suitably addressed by economic cost-benefit analysis."
"papers on the economics of climate damages were refereed by economists alone. Properly refereeing these papers required knowledge of the science of global warming that economists typically did not have. Consequently, economic referees approved the publication of papers that made claims about global warming that are seriously at odds with the scientific literature."
From 2023:
https://carbontracker.org/reports/loading-the-dice-against-pensions/
"Economists have claimed, in refereed economics papers, that 6°C of global warming will reduce future global GDP by less than 10%, compared to what GDP would have been in the complete absence of climate change.
In contrast, scientists have claimed, in refereed science papers, that 5°C of global warming implies damages that are “beyond catastrophic, including existential threats,” while even 1°C of warming—which we have already passed—could trigger dangerous climate tipping points.
This results in a huge disconnect between what scientists expect from global warming, and what pensioners/investors/financial systems are prepared for.
Consequently, a wealth-damaging correction or “#MinskyMoment” cannot be ruled out, and is virtually inevitable. (=sudden collapse of asset values)
Pension funds have a fiduciary duty to correct the erroneous predictions they have given their members.
Similarly, financial regulators, who have used the same erroneous and misleading economic damage predictions to stress test the exposure of financial institutions to climate change, must drastically revise their stress test studies.
This report calls on all stakeholders, from governments, regulators, investment professionals, all the way to civil society groups and individuals, to ensure that climate change policy is based upon the work of scientists.
Climate change must be treated as a potentially existential threat to the economy, rather than an issue which is suitably addressed by economic cost-benefit analysis."
#climateEconomics #ClimateChange #EconObscene #collapse
