Among the potential threats to economic activity: the impact of global warming on a degraded environment and an increase in the number and geographic reach of “extreme weather” natural disasters that could challenge food production and impact global migration.
The impacts of climate change include the loss of biodiversity, sea level rise, increased frequency and severity of some extreme weather events, and acidification of the oceans. Economists have attempted to quantify these impacts in monetary terms, but these assessments can be controversial.
The two main policy responses to global warming are to reduce greenhouse gas emissions (climate change mitigation) and to adapt to the impacts of global warming (e.g., by building levees in response to sea level rise). Another policy response which has recently received greater attention is geoengineering of the climate system (e.g. injecting aerosols into the atmosphere to reflect sunlight away from the Earth's surface).
There are several options for how insurance could be used in responding to climate change (Arrow et al., 1996, p. 72).One response could be to have binding agreements between countries. Countries suffering greater-than-average climate-related losses would be assisted by those suffering less-than-average losses. This would be a type of mutual insurance contract. Another approach would be to trade "risk securities" among countries. These securities would amount to betting on particular climate outcomes.
We please try to avoid the term "natural disaster(s)" since nature does not cause them:
1.. https://doi.org/10.1016/j.pdisas.2019.100008
2. https://global.oup.com/academic/product/disaster-by-choice-9780198841340?cc=gb&lang=en&
This also means that the suggestion of climate change as a cause of disasters is tenuous:
3. https://doi.org/10.1007/s13753-015-0038-5
4. https://doi.org/10.1007/s11069-016-2294-0
Migration, too, has nuances, subtleties, and provisos regarding causation by climate change:
5. https://doi.org/10.1108/DPM-09-2013-0152
6. https://doi.org/10.1108/IJCCSM-05-2014-0058
7. https://doi.org/10.3390/socsci8050131
8. https://doi.org/10.24043/isj.52
The oil industry has to be phased out. That will bring negative economic impact to oil-producing countries unless they diversify into other sustainable sources of energy which is very hard in a short time scale.
The changed weather has negative impact to some of the farmers: Last year's crop is still not harvested and certainly looks lost in the Prairies of North America.
The effects of Global Warming are there for all to see. The Economic Consequences are real, no longer in the realm of conjecture.
The possible effects of global warming on economic are not directly observable. However, the influence it has on farm productivity, late rainfalls, floods, displacement of people, loss of marine species, etc. constitutes a real danger to local, national, and international economies; and, to some extent, to the balance of the entire universe.
Unfortunately, many analyzes show that climate change will only benefit those companies with great economic power.
In northern latitudes the people use the ice to travel to get their food or conduct business. Instead of ice, now they run into molten snow and get stuck! No food and no business!
Climate change would increase income inequalities between and within countries. a small increase in global mean temperature (up to 2 °C, measured against 1990 levels) would result in net negative market sector in many developing countries and net positive market sector impacts in many developed countries.
Dear Jules SADEFO KAMDEM ,
This link is very useful:
https://blogs.ei.columbia.edu/2019/06/20/climate-change-economy-impacts/
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