The water evaporates from the ocean surface. And even though the oceans gets bigger when there is more water in them this is not a very significant factor, except for everyone living near the coast. But higher temperatures will increase evaporation and this will mean more clouds. The problem is that while clouds is white and reflect light most of the energy from the Sun is in the form of ultraviolet light which more easily pass through the clouds. However heat energy from the Earth is mainly infrared which gets reflected by the clouds. So clouds and even just humidity is a net increase in temperature due to the greenhouse effect.
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