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The Joint Research Centre (JRC) is the European Commission's science and knowledge service which employs scientists to carry out research in order to provide independent scientific advice and support to EU policy.
Climate change damages the capital stock and affects economic production and the welfare of households. Quantification of these economic effects for river floods, coastal floods, agriculture, energy supply, droughts, windstorms and human mortality, shows that the economic impacts are dominated by human mortality from temperature.
However, its contribution strongly depends on the monetary valuation of human life. The magnitude of welfare losses in southern regions of Europe is several times larger than for northern regions. Compared to 3°C warming, 2°C warming would halve the economic impacts, while limiting to 1.5°C would reduce them by 75%.
Figure: Welfare loss (% of GDP) from climate impacts considered in PESETA IV, for the EU and the UK, and for the macro regions.