Sunday, 29 July 2012

Impact of Global Warming on World Economy



Introduction:
The consequence of global warming will be felt across social, environmental and economic part of human life; for example social impact through increasing floods, droughts and environmental impact through melting ice, increase in temperature and economic impacts through market uncertainty, loss of business and agricultural activities. Global warming is a direct result of unnatural anthropogenic activities that has been proved by science and will have an impact on the world economies in many ways such as; fresh water resources, agricultural activities, sea-level rise, health of ecosystem, human health, quality of life and overall cost impacts to the economy. Globalisation has contributed in many ways towards climate change through increased quick turnover of human and natural capital in various activities and trade.
Climate change is evident as explored in this essay and has already taken place in many parts of the world. Any impact  to fresh water resources, agriculture, sea-level rise, earth’s ecosystem or human health will have follow on effect on quality of life of humans. The world has become ONE global economy. Monetary impacts of climate change are not easy to estimate but it can dramatically affect the GDP of any country that is vulnerable to climate change. Developing nations will require continuous support from developed countries along with the expertise to combat with climate change effects. The result can be devastating if carbon emissions are not controlled. Monetary impact is one part but the overall cost to the life on earth can be devastating.

Impact of global warming to world economy:
This naturally occurring greenhouse effect allows the global temperature to about 15°C to be able to sustain life on Earth. IPCC 2007 report states that eleven out of last 12 years as of 2006 rank among the warmest years in the record of earth’s surface and defines that “Warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice and rising global average sea level” (Pachauri, Reisinger, & IPCC Core writing team, 2007).  Since last many years’ scientists are alerting the world that climate change is taking place which is mainly caused by various activities practiced by humans. Though it will be at global scale, the change will be felt across the borders at local, regional and national level. The impact of global warming will include social, environmental and economic effect (Nursey-Bray & Palmer, 2008); for example social impact through increasing floods, droughts and environmental impact will be melting ice, increase in temperature and economic impact will be on world businesses, health of individuals and agricultural activities. Since industrial revolution, carbon dioxide has increased by 30% mainly due to human activities and deforestation (Houghton, 2005) and will continue to increase if not controlled. The Kyoto Protocol was accepted between 37 industrialised countries in Kyoto, Japan on 11 December 1997; an international agreement linked to the UN framework convention on climate change (UNFCCC). Sun constantly emits energy that strikes our earth and warms the surface. The greenhouse gases are just sufficient enough to hold and trap the heat and make earth’s temperature warm enough so the lives on the earth can survive. Since last many decades as a result of industrialisation and recently globalisations; humans have induced increasing amount of carbon dioxide and other greenhouse gases into the atmosphere. At large climate change will have effect on lives of people, environment and the growth of developing and developed countries. The impact of global warming will be felt across many areas such as fresh water resources, agricultural activities, sea-level rise, health of ecosystem, human health, quality of life and overall cost impacts to the economy (Houghton, 2005).
Agricultural activities: Agriculture is critical component of world’s economy. It is anticipated that global warming will create unusual changes in different parts of the world providing positive and negative outcome. For example global warming caused by carbon emissions would diminish  average yields in United States and European Community by 20 percent and Canada 18 percent and at the same time improve yield in northern Europe and Australia by 15 precent, former Soviet Union 10 percent and Japan 4 percent (Cline W. R., 1992).
Fresh water resources: Fresh water resources are fundamental element of current climate system. Water is connected to mountain, sea, atmosphere and the surface of the earth. Many of the world’s fresh water resources have already been exhausted for example in “India 75% of available water is so used” (Houghton, 2005) and according to World Bank, India faces turbulent future in regards to water due to its capacity to build new water infrastructure and storage since climate change is causing 50% of precipitation in just 15 days (EIU ViewsWire, 2006) which will have very serious impacts on water usage for agriculture and industrial activities. Longer summer and increased precipitation connected with global warming can cause diarrheal disease that lives in intestines and highly strong to chlorine disinfection (Spence, 2006).
Sea level rise: Global warming will lead to increase in earth’s temperature resulting in rise of sea-level by ice sheets melting or sliding in to ocean from Greenland and Antarctica, expanding sea water and melting other mountain glaciers (Oguz, 2009).  Many coastal areas, wetlands and fisheries will be impacted as a direct result of this change. It has been observed that increasing sea level is consistent with global warming as per IPCC Synthesis report. Only future will tell.
Earth’s ecosystem: Ecosystem is vital component of the earth’s structure. Any harm to ecosystem means disturbance in earth’s health. Climate change and increasing temperature through natural and human induced activities will have an impact on the ecosystem.
Human health: Global warming due to increased carbon emissions will have fatal impact on human health. Health of individuals can be impacted due to many reasons and climate change is definitely one of them. Global warming can affect human health in many ways either directly, indirectly or through changes in economic conditions. Change in climate can have severe impact on human body; for example person living in cooler weather is more used to cold vs person living in hotter weather. Air pollution produced through burning fossil fuel has many impacts on human health. Evidence suggests that both developed and developing nations are victims of increasing air pollution through greenhouse gas emissions (Aron & Patz, 2001). Through many changes in technology developed nations have been successful in achieving clean air but many developing nations are still struggling with poor air quality and therefore deteriorating human health. Changing weather pattern will require adjustment in human habits and ability to adopt those changes along with the required tools and capital.
Quality of life: Any impact to fresh water resources, agriculture, sea-level rise, earth’s ecosystem or human health will have follow on effect on quality of life of humans. The energy demand has increased dramatically generating CO2 and GHGs emissions. The world has become ONE global economy. Impacts of one country can easily be felt by another country. Scarce resources of poor country are being exhausted by rich countries when and where possible in this resource constraint world. According to UN Report wealth of distribution of wealth between rich and poor nations are unequal (Human Development Report, 2000) and therefore poor nations are left with worsening conditions of climate change, disturbed ecosystem, varied health issues, and lack of food and water.
Conclusion:
Economic impact of global warming will be devastating if countries are not equipped with necessary tools to identify and mitigate certain practices that emit carbon dioxide in to the atmosphere. Monetary impacts of climate change are not easy to estimate (Auffhammer, 2008) but it can dramatically affect the GDP of any country that is vulnerable to climate change. Developing nations will have many challenges from altered ecosystem, fresh water and food supply, healthcare, large migration and overall growth of the economy. Developing nations will require continuous support from developed countries along with the expertise to combat with climate change effects. Proactive adaptation in current practices where carbon dioxide and other greenhouse gases are emitted would support the world’s economy to overcome effects of global warming.
Human health will require great attention to ensure that the impacts of climate change is measured and dealt with at local, regional and national level with appropriate medical facilities and drugs. Rising sea levels will force large migration from coastal areas to in-land which will demand strong infrastructure and proper land management. In-land migration with increasing population will be a huge challenge for any country because it will require more food, water, shelter, health, suitable climate and obviously strong ecology system on which the whole of humanity and economy is dependent.

Reference:

Aron, J. L., & Patz, J. (2001). Ecosystem Change and Public Health: A Global Prespective. USA: The Johns Hopkins University Press.
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