As the effects of climate change become more and more pronounced, it’s having a major impact on the world’s economy. The IPCC (Intergovernmental Panel on Climate Change) reports that “the impacts of climate change will be felt broadly across the world, including disruptions to food production linked to changes in weather patterns and rising sea levels.”
In this article, we’re looking at how climate change is impacting all of us- especially the economy.
The cost of natural disasters is increasing
A recent study by Swiss Re found that the global costs of natural disasters have increased from $50 billion per year in the 1980s to $200 billion per year today. This is a direct result of climate change- as the world gets warmer, we’re seeing more and more extreme weather events. Countries plagued with earthquakes and typhoons report continuously-increasing magnitudes and strength, proving that climate change truly is a force to be reckoned with.
There will be a decline in crop yields
Another major impact of climate change is the decline in crop yields. A study by the University of Leeds found that “global warming of 2 degrees Celsius could reduce maize yields by as much as 30 percent, wheat yields by 13 percent, and rice yields by 20 percent.” This will have a devastating effect on the world’s food supply- we could see mass famine and starvation if we don’t take action soon.
Fisheries and aquaculture are being disrupted
Climate change is not only bad for the environment, but it’s also bad for our economy. The IPCC predicts that “the impacts of climate change will be felt broadly across the world, including disruptions to food production linked to changes in weather patterns and rising sea levels.” As the effects of climate change become more pronounced, it’s having a major impact on all aspects of life- even fisheries and aquaculture are being disrupted.
Even smaller fishermen and those who use spinning rods and fishing reels feel this impact. Reports of lesser yield through traditional methods started cropping up in Southeast Asia about 50 years ago. Now, industry experts and scientists warn that this will become even more commonplace in many other fisheries worldwide.
Tourism is taking a hit
One of the most visible effects of climate change is increased natural disasters. These events are often accompanied by major losses in life and property, which can have a devastating effect on tourism. In addition, as the world gets warmer, we’re seeing more and more extreme weather events. This can make certain tourist destinations less attractive to holidaymakers, which again hurts tourism.
Trade routes are being disrupted
As the effects of climate change become more pronounced, it’s having a major impact on all aspects of life- even trade routes are being disrupted. A study by the World Bank found that “climate change is already disrupting trade flows and harming economies in developing countries.” This is because extreme weather events and natural disasters make it increasingly difficult to transport goods from one place to another.
This is having a particularly damaging effect on developing countries already struggling with poverty and inequality. The World Bank report that “trade disruptions caused by weather-related shocks could lead to losses of up to 1.7 percent of GDP in some countries.” This could have a devastating effect on these countries’ economies and could make it even more difficult for them to climb out of poverty.
Human health is at risk
Climate change is also having a major impact on human health. The IPCC reports that “the impacts of climate change will be felt broadly across the world, including disruptions to food production linked to changes in weather patterns and rising sea levels.”
In order to protect our health, we need to take drastic action to combat climate change. We need to reduce our reliance on fossil fuels and invest in renewable energy sources. If we don’t, then human health will be at risk due to extreme weather events or natural disasters.
And lastly, infrastructure is being damaged
One of the most visible effects of climate change is the damage that it does to infrastructure. Roads, bridges, and homes are all being damaged by extreme weather events and natural disasters. For example, in 2017, Hurricane Irma caused $50 billion worth of damage to Florida’s infrastructure.
This is just the beginning – the situation is only going to get worse. In order to protect our infrastructure, we need to take drastic action to combat climate change. We need to reduce our reliance on fossil fuels and invest in renewable energy sources. If we don’t, then infrastructure will be damaged due to extreme weather events or natural disasters.
