Climate – When Economic Models Become Fiction
The latest actuarial-style assessment from the University of Exeter’s Green Futures Solutions team and financial think tank Carbon Tracker argues that the tools steering global climate policy are fundamentally misreading the danger ahead. Economic “damage functions” embedded in widely used models treat climate change as a marginal adjustment to an otherwise smoothly growing economy, rather than as a system‑shaping force capable of triggering structural decline. Lead author Dr. Jesse Abrams warns that these models “can’t capture what matters most” about climate risk: cascading failures, threshold effects, and compounding shocks.