The Economics of Climate Change: The Financial Impact of Nature’s Storm (P.1)
Climate change has unintentionally altered the economic trade in an unexpected way where most people don’t even seem to notice. Due to extreme Carbon Monoxide and other harmful chemicals flooding our atmosphere, there have been frequent natural disasters, providing a collapse in the economic market and people’s lives. In this article, we’ll be covering 4 ways on how our climate has drastically changed our economic trade.
1. Damage To properties And Infrastructure
Hurricanes, Earthquakes, Tsunamis, and heatwaves are the sole reasons for the collapse in our economic trend, due to their frequent havoc amongst things around the world. When it comes to hurricanes and tsunamis, buildings, homes, and bridges are often lead to crumbles. Heatwaves and earthquakes on the other hand, cause roads and railways to crack, which costs a fortune to repair. When cities or countries experience these disasters, it can take years to fix the damage, and it impacts both local and global economies.
New study calculates climate change’s economic bite will hit about $38 trillion a year by 2049
CarbonBrief, New study calculates climate change’s economic bite will hit about $38 trillion a year by 2049, Carbon Brief Ltd © 2024 — Company № 07222041, 18, April 2024.
2. More Working Hours
Heatwaves provide an extreme growth in temperatures to the point where people in construction and farming work endlessly due to the massive destruction nature causes like the melting of railroads melt and highly unusual things occur. Not only do these conditions make it difficult and dangerous to work in, but it also leads to the disruption of supply chains, thus doing further damage economically for most if not all workers.
In July 2022, temperatures across the United Kingdom soared — topping 104°F. Quickly, structures began to literally melt. Airport runways warped, suspending flights. Train tracks bent and caught fire.
Overall, the United Kingdom’s yearly price tag for extreme heat is estimated at more than $300 million.
CFR Education, How to Address the Economic Costs of Climate Change, ©2024 Council on Foreign Relations, 18, October 2024.
https://education.cfr.org/learn/reading/infrastructure-economic-damage-climate-change
3. Energy And Power Supply Difficulties
Climate change has made energy systems weak and vulnerable, impacting society significantly. Heatwaves can cause power lines to sag, leading to blackouts, while floods can knock out power plants and disrupt energy supplies. These failures are more than inconvenient — they can become life-threatening, as hospitals, homes, and essential services heavily rely on electricity. Repairing these systems after disasters is expensive and slow, delaying the transition to renewable energy. Climate change highlights the fragility of our energy systems, emphasising the urgent need for adaptation to avoid greater problems.
4. Slower Economic Growth
All these reasons that are provided in this blog are only the tip of the iceberg. Not only do these points cost EXTREME amounts of money, but it also leads to slower economic growth , due to the frequent payments one has to face due to the frequent disasters, resulting in a decrease in people’s salaries, and increasing prices on everyday items (like gas, food, and even water!) . Leading to an increase in poverty rates around the world.