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Matters Arising: Spatial correlation in economic analysis of climate change

2025/08/14 by Schötz, Christof · 1 citation
#Applications (stat.AP) #FOS: Computer and information sciences

paper · doi:10.48550/arxiv.2508.10575

Abstract

Climate change poses substantial risks to the global economy. Kotz, Levermann and Wenz (Nature, 2024) statistically analyzed economic and climate data, finding significant projected damages until mid-century and a divergence in outcomes between high- and low-emission scenarios thereafter. We find that their analysis underestimates uncertainty owing to large, unaccounted-for spatial correlations on the subnational level, rendering their results statistically insignificant when properly corrected. Thus, their study does not provide the robust empirical evidence needed to inform climate policy.

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