BloombergNEF and Bloomberg Economics said in a joint paper last month that physical-risk damage functions are typically estimated from historical relationships and “may under-represent non-market impacts, distributional effects, adaptation dynamics, compounding risks, and low-probability/high-impact outcomes,” including so-called tipping points. Economic estimates of damages from climate change “vary a lot, and there is wide uncertainty,” with “uncertainty widening at higher temperatures,” the report also found.