Economic Impact of Extreme Sea-level Rise

by Makari Krause

Sea level rise is one of the most concerning facets of climate change, Pycroft et al. (2014), examine its effects on the social cost of carbon. Rapid ice sheet melting or collapse which would cause rapid, significant sea level rise is hard to incorporate into climate models because it is difficult to gauge the likelihood of such events. This difficulty stems from the fact that the underlying processes are, themselves, hard to model. Pycoroft et al. use an integrated assessment model to examine the impacts and costs of large-scale damage associated with sea level rise. In their model they adjust the physical aspects that contribute to sea level rise and the economic consequences of those aspects. Their model shows that incorporating extreme sea level rise significantly increases the social cost of carbon. Continue reading