The Economic Impact of Ocean Damage on the Social Cost of Carbon

Recent research led by scientists at the Scripps Institution of Oceanography has revealed that the economic costs associated with climate change are significantly underestimated when ocean damage is not factored in. This study introduces the concept of the "blue" social cost of carbon, which incorporates the detrimental effects of climate change on marine ecosystems into the existing framework for calculating the social cost of carbon dioxide emissions.

Ocean damage nearly doubles the 'true cost' of carbon, study findsStudy Finds Ocean Impacts Nearly Double Economic Cost of Climate ChangeNature

The study estimates that the inclusion of ocean impacts nearly doubles the social cost of carbon from $51 to $97.2 per ton of carbon dioxide emitted. This increase of $46.2 per ton reflects the extensive economic damages associated with climate-driven changes in ocean conditions, such as warming temperatures, altered chemistry, and reduced oxygen levels. These changes threaten vital ecosystems, including coral reefs, mangroves, and fisheries, which are crucial for food security, trade, and cultural identity.

Study Finds Ocean Impacts Nearly Double Economic Cost of Climate ChangeOcean damage nearly doubles the 'true cost' of carbon, study findsNature

Researchers evaluated both market and non-market values to quantify the ocean's economic contributions. Market losses included decreased fisheries revenue and disrupted shipping, while non-market values encompassed health impacts from reduced nutrition and the intrinsic value of biodiversity. By integrating these factors into an economic model calibrated to various greenhouse gas emission scenarios, the study highlights the substantial economic burden of ocean-related damages, projected to reach nearly $2 trillion annually by 2024.

Study Finds Ocean Impacts Nearly Double Economic Cost of Climate Change

The findings underscore the necessity of incorporating ocean damage into climate policy assessments. Environmental economist Bernardo Bastien-Olvera emphasized that without assigning a monetary value to ocean harm, these impacts remain invisible to decision-makers. The study's framework aims to transform how governments and industries evaluate the costs of carbon pollution, potentially influencing future climate policies and economic strategies.

Ocean damage nearly doubles the 'true cost' of carbon, study finds

While the study presents a compelling case for the inclusion of ocean impacts in climate economics, some critics argue that market damages do not fully capture the cultural and ecological significance of marine ecosystems. Bastien-Olvera noted that a dollar of market damage does not equate to a dollar of cultural loss, indicating that different categories of damage carry distinct meanings for society.

Study Finds Ocean Impacts Nearly Double Economic Cost of Climate Change

The integration of ocean damage into the social cost of carbon represents a significant advancement in climate change economics. As global emissions continue to rise, the need for comprehensive assessments that account for all environmental impacts becomes increasingly critical. This research not only sheds light on the economic ramifications of climate change but also calls for a reevaluation of how societies value and protect their marine resources.

Ocean damage nearly doubles the 'true cost' of carbon, study finds

• “If we don’t put a price tag on the harm that climate change causes to the ocean, it will be invisible to key decision makers,” — Bernardo Bastien-Olvera, Environmental Economist

Ocean damage nearly doubles the 'true cost' of carbon, study finds

• “Until now, many of these variables in the ocean haven’t had a market value, so they have been absent from calculations. This study is the first to assign monetary-equivalent values to these overlooked ocean impacts.” — Bernardo Bastien-Olvera, Environmental Economist

Ocean damage nearly doubles the 'true cost' of carbon, study finds

While the study provides a robust framework for understanding ocean-related damages, it does not address potential discrepancies in how different regions may experience these impacts. Further research is needed to explore localized effects and the varying economic dependencies on marine ecosystems across different societies.

Ocean damage nearly doubles the 'true cost' of carbon, study finds