The high stakes of climate-risk accounting

Economists need to do better in quantifying the damage associated with rising seas and other interlinked risks associated with climate change.

A bamboo hut sits on top of concrete structures in the submerged coastal village of Sitio Pariahan, north of Manila. PHOTO: REUTERS
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Economists are supposed to be good at understanding risk.

Decision-making in the face of uncertainty, after all, is the discipline's bread and butter. Yet at a time when real-world risks - geopolitical, macroeconomic, financial, public-health and environmental - are piling up, many economists seem to be at a loss.

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