Abstract:
We develop empirically-grounded estimates of willingness-to-pay to avoid excess mortality risks caused by climate change. Using 40 countries’ subnational data, we estimate a mortality-temperature relationship that enables global extrapolation to countries without data and projection of its future evolution, accounting for adaptation benefits. Further, we develop a revealed preference approach to recover unobserved adaptation costs. We combine these components with 33 high-resolution climate simulations, which produces a right-skewed distribution of global WTP with a mean of $38.1 per tCO2 under a high emissions scenario. Projections generally indicate increased mortality in today’s poor locations and higher adaptation expenditures in rich ones.