May 6, 2024

A Significant Surge: How Tropical Cyclones Increase the Cost of Carbon

New research finds that accounting for the long-term impacts of hurricanes increases the international Social Cost of Carbon by over 20%. This elevation is driven by projected damage boosts in major economies due to worldwide warming. The research study stresses that existing estimates undervalue the genuine expenses of environment modification by ignoring these prolonged economic results.
Extreme events like hurricanes have immediate impacts, but likewise long-lasting implications for societies. A new study released in the journal Nature Communications now finds: Accounting for the long-term impacts of these storms raises the global Social Cost of Carbon by more than 20 percent, compared to the estimates presently utilized for policy assessments. This boost is mainly driven by the projected increase of tropical-cyclone damages to the major economies of India, USA, China, Taiwan, and Japan under worldwide warming.
” Intense tropical cyclones have the power to slow down the economic development of a nation for more than a years, our analysis shows. With global warming, the share of the most intense cyclones is expected to increase so it ends up being most likely that economies may not be able to recover completely in between storms,” discusses Hazem Krichene, author and scientist at the Potsdam Institute for Climate Impact Research (PIK) at the time the research study was performed. That is why long-term ramifications like decreases in financial development triggered by hurricanes might damage financial development even more powerful than the direct financial damage of the storms.
The so-called Social Cost of Carbon is a dollar price quote for future expenses of societies resulting from the emission of one extra heap of carbon dioxide in the atmosphere. “However, long-term effects of extreme occasions are not taken into account so far, so that current Social Cost of Carbon approximates only show a part of the real expenses.

Hotter Climate, More Intense Tropical Cyclones, Higher Costs
For their study, the researchers analyzed the economic damages triggered by these storms in 41 tropical-cyclone-prone countries over the duration from 1981 to 2015 and projected them for future international warming scenarios. In contrast to previous research studies they consequently represented the primarily unfavorable long-lasting impacts of these storms on financial development. The scientists discovered that these effects increase the Social Cost of Carbon by more than 20 percent internationally (from 173 US$ to 212 US$ per heap CO2) and by more than 40 percent in the analyzed tropical-cyclone-prone countries– compared to the Social Cost of Carbon quotes presently utilized for policy evaluations.
” When it concerns extreme occasions, much focus is put on instant financial damages. It is as crucial to better measure the total expenses of these events to notify societies of the genuine costs of climate change and the climate impacts that can be avoided by efficient climate action,” concludes study author Christian Otto from PIK.
Reference: “The Social Cost of Tropical Cyclones” 23 November 2023, Nature Communications.DOI: 10.1038/ s41467-023-43114-4.

The so-called Social Cost of Carbon is a dollar price quote for future expenses of societies resulting from the emission of one additional heap of carbon dioxide in the environment. “However, long-lasting effects of extreme occasions are not taken into account so far, so that current Social Cost of Carbon approximates just reflect a part of the actual costs. The researchers found that these effects increase the Social Cost of Carbon by more than 20 percent worldwide (from 173 US$ to 212 US$ per ton CO2) and by more than 40 percent in the examined tropical-cyclone-prone nations– compared to the Social Cost of Carbon quotes currently utilized for policy assessments.