Impacts of Global Warming on the Economy

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Impacts of Global Warming on the Economy

• Marisol García-Reyes
• Samaresh Kowshik
• Sonia Lund
• Michael Rush

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Global warming is happening

• Human activities that are sensitive to climate
  change
• Agriculture forestry -gt productive capacity
• Water resources -gt human water supply
• Coastal zones marine services -gt fishing
  tourism
• Human settlements -gt flooding
• Energy industry -gt changes in demand
• Financial services -gt insurance
• Human health -gt heat stroke

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Climate change could have negative, but also a
positive impact on human activities

• Positive
• Increase rainfall
• Less cold weather events
• Migration of recreation sites

• Negative
• Increase rainfall
• Extremer heat waves
• Migration of recreation sites

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Rain....

• Agriculture is estimated to be affected,
  especially in Africa.
• Roughly 70 of the population rely on
  rain-growing agriculture to survive
• Tanzania estimates they will grow 33 less of
  their staple crop maize (corn)

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The good news...

• Although there are many negative parts to global
  warming, the positives shouldnt be ignored.
• Increased CO2 means forests, trees, etc. can
  flourish
• Especially in places like Russia, Iceland,
  Canada, and Japan
• More precipitation due to warmer climate

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Large impact on economy

• Direct - Negative
• Recovery from floods, storms, food supply stress,
  energy demand, health system, insurance
• Indirect (Adaptation/Mitigation)
• Prevention, migration, research of new
  technologies and implementation, policies
  implementation to reduce global warming
• Could be positive
• We are going to invest money if we DO something
  and if we DONT do anything

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More than just money.

• Human lives
• Infrastructure
• Animal species / pets
• Personal property
• Health
• Recreational Sites

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Vulnerability

• Depends on the geographic location, social,
  economic and environmental conditions
• Developing countries more affected
• ¾ of the estimated economic losses are in
  developed countries

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Health

• WHO released report stating that global warming
  is estimated to increase deaths by 150,000 and
  illnesses by 5 million.
• Malaria is heat sensitive, i.e. the higher the
  heat, the more blood meals and higher frequency
  of eggs being laid

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Direct Costs of Global Warming

• IPCC (2001) Possible increase in floods,
  landslides and tropical cyclones occurrence and
  severity
• 40 billion losses estimated in 1990 due to major
  weather events.
• 2005 storm season
• 1st with 28 named storms, 15 hurricanes, 4
  category 5 hurricanes, 4 major hurricanes hitting
  the US.
• Associated to multi-decadal variability (NOAA)
• Katrina 50 billion losses, 100 billion
  recovery

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Indirect Costs of Global Warming

• IPCC (2001) Rise in sea level
• Will affect between 75-200 million people
• Costs for losses, migration, new technologies to
  protect settlements
• 1 m - 270-475 billion (just in the US)
• Implementation of new technologies and policies
• Kyoto protocol - 125 billion (US)

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Conclusion

• Global warming is real
• Its going to cost money with or without action
• Without action we could also loss more than just
  dollars
• Adaptation/Mitigation investment can enhance
  economy

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References

• IPCC Impacts, Adaptation Vulnerability
• NOAA http//www.noaanews.noaa.gov/stories2005/s25
  40.htm
• Nordhause. Global Warming Economic. Science. 9
  November 2001.
• Decanio. The Economics of Climate Change.
  October, 1997
• WHO Climate Change
• Wikipedia Effects of Global Warming
• FOX News Activists, Not Global Warming, a
  Third-World Threat