Regional economic costs of climate change: An interdisciplinary impact assessment for Upper Austria

Region-specific meteorological data show that Upper Austria will mainly be affected by increasing temperatures (up to +2.7 °C in 2050) and decreasing precipitation (up to - 27 mm in 2050). Using an interdisciplinary framework, we derive climatic developments and quantify the resulting direct sectoral and macroeconomic impacts for Upper Austria. Based on a set of climate change indicators, sectoral damages are monetized for selected impact chains in forestry, health, agriculture, space heating and cooling, and winter tourism. These damage costs are used as input for ex-ante simulations to quantify the macroeconomic impacts in 2022-2050. The results show an annual decline in gross regional product, accompanied by an annual decline in employment. This study provides a basis for decision making in Upper Austria, as well as in regions with comparable geographical, economic or demographic structures, and highlights the importance of region-specific climate change adaptation strategies.