• silence7@slrpnk.netOPM
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    1 year ago

    The Nordhaus estimates were always known for having limited utility for large changes in temperatures.

    They assumed that damage to a sector wouldn’t matter much if it was currently a small part of the economy. For example, if agriculture was 2% of the US economy, and agricultural output went to zero, the result would be 2% damage to GDP. The real world doesn’t work that way though: people who are starving to death don’t work, so GDP would go to zero in that case.