Incremental Costs
Estimating the incremental costs of climate action may be the most difficult challenge in all of climate economics. All estimates, without exception, are thick with assumptions both explicit and hidden. This Calculator makes no attempt to sort out the many issues here. Rather it provides users with the controls below, by which they can themselves estimate the global incremental mitigation and adaptation costs associated with the mitigation pathway that they have themselves chosen.
The one decision we have allowed ourselves to make is how to default the estimated incremental costs. We have chosen to default both to incremental global mitigation costs and incremental global adaptation costs to 1% of Gross World Product. In so doing, we have ignored the many obvious links between greater mitigation ambition and greater mitigation cost, and the many reciprocal links between greater mitigation ambition and lower adaptation (and loss & damage) costs.
The cost estimates given here affect only a few Calculator readouts. Just below, the mitigation cost estimate is combined with the Global Mitigation Requirement associated with the selected Global Mitigation Pathway to calculate a global average incremental mitigation cost, per tonne of CO2e. Later, in the Country Report and the "Fair share" table, it will be used to express the per capital fair share in financial terms. All other calculations in the Calculator are done in tons, not dollars.
Incremental CostsEstimating the incremental costs of climate action may be the most difficult challenge in all of climate economics. All estimates, without exception, are thick with assumptions both explicit and hidden. This Calculator makes no attempt to sort out the many issues here. Rather it provides users with the controls below, by which they can themselves estimate the global incremental mitigation and adaptation costs associated with the mitigation pathway that they have themselves chosen.The one decision we have allowed ourselves to make is how to default the estimated incremental costs. We have chosen to default both to incremental global mitigation costs and incremental global adaptation costs to 1% of Gross World Product. In so doing, we have ignored the many obvious links between greater mitigation ambition and greater mitigation cost, and the many reciprocal links between greater mitigation ambition and lower adaptation (and loss & damage) costs.The cost estimates given here affect only a few Calculator readouts. Just below, the mitigation cost estimate is combined with the Global Mitigation Requirement associated with the selected Global Mitigation Pathway to calculate a global average incremental mitigation cost, per tonne of CO2e. Later, in the Country Report and the "Fair share" table, it will be used to express the per capital fair share in financial terms. All other calculations in the Calculator are done in tons, not dollars.
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