There are several broad approaches to estimating climate damages, including biophysical process models, structural economic models, statistical methods  and hybrid approaches, with each methodology having strengths and weaknesses. Process models simulate physical, natural science and/or engineering processes and their response to climate variables, which are then monetised . Process approaches have the advantage of being explicit and interpretable, though they can be computationally intensive; may omit relevant impact channels, interactions and market dynamics affecting valuation; and often lack a rigorous empirical basis for calibration . Structural economic modelling represents climate impacts on inputs, production, household consumption, aggregate investment, and markets for economic sectors and regional economies , often using computable general equilibrium  frameworks. Structural models can evaluate how market and non-market impacts might enter and transmit through economies, and adaptation responses within input and output markets, consumer and investment choices, and inter-regional trade . Statistical methods estimate economic impacts in a given sector  or in aggregate , inferred from observed changes in economic factors, weather and climate, with responses and net results constrained by available data. Since AR5, hybrid approaches have taken different forms to integrate process, statistical and/or structural methods, and represent a potentially promising means of leveraging the strengths of different approaches . There is also a small literature that uses expert elicitation to gather subjective assessments of climate risks and potential economic impacts .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report