From the article: All of this helps explain why IPCC anticipates climate change will have a modest impact on economic growth. By 2100, IPCC projects the global economy will be 300 to 500% larger than it is today. Both IPCC and the Nobel-winning Yale economist, William Nordhaus, predict that warming of 2.5°C and 4°C would reduce gross domestic product (GDP) by 2% and 5% over that same period.

Question: Aside from what I assume are massive error bars on projecting economic growth due to scientific models 80 years in the future, I read that most of the models do not assume climate change impacts actual growth and therefore is exempt from compounding. On the other hand they use compounding to extrapolate growth. It seems odd that escalating climate damages as outlined in the reports would not impose a sizable tax. Anyone with more detailed knowledge of long-term economic projections care to comment on this?