Juliet Schor (@julietschor.bsky.social)

Why global temperature matters Climate change is frequently described as an existential threat, posing significant risks to our lives, livelihoods and the global economy. This view, however, stands in stark contrast to empirical estimates of the impact of climate change on economic activity, which imply only modest economic effects. Do existing estimates not account for the full impact of climate change, or are the costs of climate change truly so small? This column argues that shifting attention to a new and comprehensive source of variation in the data – global temperature itself – implies drastically larger impacts of climate change than conventional estimates. https://cepr.org/voxeu/columns/why-global-temperature-matters