Climate change attribution and the economic costs of extreme weather events: a study on damages from extreme rainfall and drought

An important and under-quantified facet of the risks associated with human-induced climate change emerges through extreme weather. In this paper, we present an initial attempt to quantify recent costs related to extreme weather due to human interference in the climate system, focusing on economic costs arising from droughts and floods in New Zealand during the decade 2007–2017. We calculate these using previously collected information about the damages and losses associated with past floods and droughts, and estimates of the “fraction of attributable risk” that characterizes each event. The estimates we obtain are not comprehensive, and almost certainly represent an underestimate of the full economic costs of climate change, notably chronic costs associated with long-term trends. However, the paper shows the potential for developing a new stream of information that is relevant to a range of stakeholders and research communities, especially those with an interest in the aggregation of the costs of climate change or the identification of specific costs associated with potential liability.