‘Flawed’ economic modelling of physical climate risk needs adjustment: report
“The net result of flawed economic advice is widespread complacency amongst investors and policy makers."
Economic modelling of climate risks is fundamentally flawed and understates the financial impacts of climate change, according to a new report that urges governments to fix this “faulty radar”.
The economic models used by governments, central banks, and investors to assess physical climate risks rely on assumptions that break down as the world gets warmer, and need to be updated, according to an analysis published today by the University of Exeter and think tank Carbon Tracker.
