It is both not useful and false to model GDP under global warming.
Higher insurance, higher HVAC energy consumption, higher food water and natural fiber prices, and higher reconstruction activity after floods, storms, forest fires all increase GDP. GDP doesn’t care if you are spending more to survive or buying a bigger yacht.
Death from disasters, heat, or unaffordable cost of living, and lower property values from both insurance costs and drought driven poor agriculture productivity is a loss in real wealth, where life/health is included in wealth.
Cost of global warming is only the latter, and cost of survival.
It is both not useful and false to model GDP under global warming.
Higher insurance, higher HVAC energy consumption, higher food water and natural fiber prices, and higher reconstruction activity after floods, storms, forest fires all increase GDP. GDP doesn’t care if you are spending more to survive or buying a bigger yacht.
Death from disasters, heat, or unaffordable cost of living, and lower property values from both insurance costs and drought driven poor agriculture productivity is a loss in real wealth, where life/health is included in wealth.
Cost of global warming is only the latter, and cost of survival.