Newswise — Climate change goals set out in the Paris Agreement are only economically reasonable if non-market factors such as human health and loss of biodiversity are prioritised, according to a new study published by Dr Taikan Oki, former Senior Vice-Rector of United Nations University headquartered in Japan, in IOP Publishing’s academic journal Environmental Research Letters.
A collaborative effort involving researchers from 23 institutions, including The University of Tokyo, National Institute for Environmental Studies, and Kyoto University, conducted a comprehensive study on climate change. The research incorporated a cost-benefit analysis that considered previously overlooked non-market factors like biodiversity loss and the impact on human health. The team evaluated the cost of climate change for different priority systems and estimated the total cost, including mitigation, from 2010 to 2099 to be between 46 and 230 trillion US dollars. This study sheds light on the economic implications of climate change, taking into account various critical factors that are often not fully considered in traditional analyses.
The study's findings indicate that the financial gains from reducing climate change are generally comparable to the costs of implementing mitigation measures. The research team approximates the additional cost of mitigation efforts to be between 45 and 130 trillion US dollars, while the financial benefits resulting from these reduction efforts range from 23 to 145 trillion US dollars. To make the 2°C temperature goal economically viable, the study emphasizes the necessity of giving greater importance to the future implications of biodiversity loss and health factors. The researchers argue that these factors will become increasingly critical in the future and should be considered more seriously in climate change strategies. Incorporating these non-market factors into climate change mitigation policies could lead to more sustainable and economically feasible solutions.
The study underscores the importance of adopting an integrated approach to address climate change, wherein biodiversity and health concerns are given equal weight alongside economic considerations. By fully considering non-market values, including health factors like diarrheal diseases and malaria, as well as the decline of species on Earth, such as fish and insects, a more comprehensive understanding of the true costs and benefits of climate change mitigation can be achieved. Integrating these various factors allows for a more holistic assessment and aids in making informed decisions that take into account the long-term well-being of both the environment and human populations.
Dr. Oki, who previously served as the Coordinating Lead Author for the Intergovernmental Panel on Climate Change, emphasizes that the current efforts to achieve climate goals worldwide are not progressing as required. The future trajectory will heavily depend on how much importance is given to risks like large-scale irreversible events and how they are acknowledged and addressed. One critical issue is that the costs of mitigation efforts are often comparable to, or even exceed, the economic benefits of reducing climate change. To address this, there must be a greater emphasis on non-monetary commodities, such as human health and biodiversity. Accelerating technological innovations will be crucial in reducing the overall cost of mitigation strategies. To effectively combat climate change, a multifaceted approach that integrates various considerations, including non-market values, is necessary to pave the way for a more sustainable and resilient future.
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