www.zerohedge.com BY TYLER DURDEN
By Mish Shedlock of MishTalk
Despite endless fearmongering in numerous places, a study by the White House Council of Economic Advisors shows climate change will have little impact on GDP.
Transition Risks of Climate Change on Macroeconomic Forecasting
We are told by the Biden Administration, the UN, AOC, and all the Gretas of the world that a rise in global temperatures in excess of 1.5 degrees would be catastrophic.
With that in mind, please consider a White Paper on the Transition Risks of Climate Change on Macroeconomic Forecasting by Biden’s Council of Economic Advisors and the Office of Management and Budget (OMB)
Climate-related financial risks relevant to the macroeconomic projections in the President’s Budget are composed of two types (Carney 2015): physical risks associated with the effects of climate change on economic outcomes (for instance, capital destruction in extreme events or reduced labor, capital, or land productivity in hotter temperatures) and transition risks associated with the transition to a zero-carbon economy (for example, the costs of mitigation policy or sudden changes in the valuation of assets, such as energy infrastructure with accelerated depreciation). Both have economic implications for important macroeconomic variables related to labor, trade, capital services, and productivity…
