COST-BENEFIT ANALYSIS OF CLIMATE CHANGE

A METHODOLOGICAL OVERVIEW OF RECENT STUDIES

Abstract

This paper examines the methodological aspect of climate change, particularly the aggregation of costs and benefits induced by climate change on individuals, societies, economies and on the whole ecosystem. Assessing the total
and/or marginal costs of environmental change is difficult because of wide
range of factors that have to be involved. The subsequent study tries to capture
the complexity of cost assessment on climate change therefore includes several critical factors such as scenarios and modeling, valuation and estimation,
equity and discounting.