This Cross-Working Group Box assesses literature estimating the potential global aggregate economic costs of climate change and the social cost of carbon , where the former are sometimes referred to as estimates of global 'climate damages' and the latter are estimates of the potential monetised impacts to society of an additional metric ton of carbon dioxide emitted to the atmosphere. These measures include the economic costs of climate change that could be felt in market sectors such as agriculture, energy services, labour productivity and coastal resources, as well as non-market impacts such as other types of human health risks  and ecosystems. Global economic impacts estimates can inform decisions about global climate management strategy, while SCC estimates can inform globally incremental emissions decisions. In practice, economic damage estimates have been used to explore economically efficient  global emissions pathways , while SCCs have been used to inform federal and state-level policy assessment in some countries , but the type of SCC and application matters . This literature has been assessed in previous WGII reports , and this box serves this need for this report. The assessment in this box was performed jointly across WGII and WGIII, building on the foundation of WGII AR6 Chapter 16's 'Risk to living standards' assessment , which includes consideration of severe risks to global aggregate economic output, and WGIII AR6 Chapter 3's assessment of the benefits of mitigation. It also informs Chapter 16's global aggregate impacts Reasons for Concern and supports Chapter 18's assessment of global emissions transitions, risk management and climate resilient development. In keeping with the broad risk framing presented in Chapter 1 of this report, other lines of evidence regarding climate risks, beyond monetary estimates, should be considered in decision making, including key risks and Reasons for Concern.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report