Economic cost of climate change
"What is the use of a house if you don't have a decent planet to out it on?"
- Henry David Thoreau (American Naturalist)
Economy is all about a country's income and expenditure. There are great things to talk about in economics but today we'll be focusing on the side effects of climate change on the global economy.
So let's start with a dauntingly true fact - a 2°C warm world costs us around 0.2% to 2% of the global GDP, that's over a trillion US dollars. We don't have an exact estimate because of many non-market impacts but it's a rough estimate to understand the severity of the problem.
These costs comprises of the repair costs for the buildings and transport networks. Also, high tempartures can soften and damage pavements as well as railway tracks, while flooding can destroy bridges. Climate change also affetcs the global health due to heatwaves, worsening diseases, air pollution and much more. The cost of procrastinating on the action towards climate change would be around US$10 trillion by 2050.
Now comes discrimination but it's a special one, it is estimated that the developing countries will bear 75-80% of the costs of climate change. The poorer countries have to spend most of their money on food supplies and with climate change, the food would be getting more expensive inturn harder to afford.
The economies of the developing countries are highly affected on weather. For example, in Africa 70% of the working people are employed on small farms, so farming makes up a large part of the continent's GDP. Even though the rich countries will loose more money but the proportion of GDP loss due to climate change would be higher in the poorer countries.
Estimating all the costs is just an approximation that depends on the location, companies, and more importantly tipping points based on the geographic terrains. It all depends on the ability to adapt to a newer world that's more sustainable.
For the end I just want to ask a question - What is the worth on millions of human lives and the selfless mother nature?