Economic Impact of Climate Change

Economic impacts of climate change are related to three important variables: temperature, precipitation, and change in sea level.

Agriculture
Change in rainfall and average temperature would lead to degradation of agricultural lands and impacting food security in some areas. In other areas, there will be a shift in plant and wildlife species, but if this occurs in countries of limited terrain, agricultural activity will not move.

Affecting tourism
Especially winter tourism, resulting from loss of snow cover.

Increase in drought
If countries have low renewable water supply will have an increase in water shortage and health impacts resulting from them. If countries have adequate supply of water, then their main strategy would be to manage this water source for sustainable long-term use.

Climate-related health risks would be more visible, with the increase of allergies, water-borne diseases, and pollution.

Productivity loss (Energy Sector)
The energy sector will be highly affected due to the increased demand for cooling. Even severe rainfall events and snowstorms can delay planting and harvesting, cause power outages

Sea-level rise
Would lead to even in small increase to impact coastal areas, affecting groundwater aquifer, coastal settlements and even destruction of coral reefs.

Societal impacts
Increase in “climate refugees” – people who are forced to leave their homes because of drought, flooding, or other climate-related disasters

Damage to property and infrastructure
Sea-level rise, floods, droughts, wildfires, and extreme storms require extensive repair of essential infrastructure such as homes, roads, bridges, airport runways, power lines, dams…

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3 thoughts on “Economic Impact of Climate Change

  1. Indeed. For us in tiny island Singapore, there is a lot of concern about rising ocean levels. It would for us mean a loss of land and also damage to the existing coastal infrastructure. Not to mention the seafront property owners won’t be too happy!

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    1. Yes. Not only that, it will also impact the economy of countries that are dependent on eco-tourism. Hopefully a solution would be found after the entry into force of the Paris Agreement!

      Liked by 1 person

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