Author(s): Ackerman, F., and Munitz, C.
In: SEI-U.S. Working Paper WP-US-1105
Type: Working paper
Link to SEI author(s):
This paper presents a disaggregation of the damage estimates in FUND, followed by a more detailed examination of agricultural damages in particular.
Climate damages in the FUND model: A disaggregated analysis (WP)
The FUND model of climate economics, developed by Richard Tol and David Anthoff, is widely used in research and policy-making. It was one of three models used by the U.S. government's Interagency Working Group on the Social Cost of Carbon in 2009, which estimated the SCC – the cost of incremental damages from greenhouse gas emissions – at per ton of CO2.
FUND's own central estimate of the SCC (under the Interagency Working Group assumptions) is , the sum of an estimated net benefit in agriculture, a net cost in heating and cooling, and very small net costs in all other areas. The authors identify flaws in FUND's equations, and find that FUND relies on outdated research that overestimates agricultural benefits from climate change.
Download the working paper (PDF, 688kb)
Note: A peer-reviewed and revised version of this paper has been published in the journal Ecological Economics.