Scientists have been doing comprehensive research over the past decade about the impact of climate change on economies of different countries. Till now, what they found that climate change badly affects the growth rate of the global economy and the number of people will get poorer in the upcoming years.
At the same time, due to the increase in awareness about global warming and other environmental hazards; stakeholders or owners are feeling under pressure to analyze the impact of how their companies are affecting the climate change.
The environmentalists at the Norvergence carried out in-depth research to determine the economic impacts of climate change on various different countries and continents.
Economic Impact of Climate Change on the United States of America
Last year, the US government agency released the 4th National Climate Assessment (NCA) report that shows a clear picture of how climate change is affecting the U.S. economy.
Further, the report states that if global warming continues at the present rate, the U.S. economy will come down by almost 10 percent until the end of this century. By 2045, Charleston (South California) will experience around 180 tidal floods and other parts will trap into wildfires. The Midwest area will see a maximum number of premature deaths because of ozone.
Economic Impacts of Climate Change on China
Apart from modernization challenges, China’s economy is suffering hugely from climate change. In May 2018, a report was published in Nature Climate Change that predicts that China will lose around the U.S. $389 billion over the next two decades because of flooding caused by climate change. Further, climate change promotes the growth of harmful algal in China that becomes a threat to safe drinking water.
Economic Impacts of Climate Change on Africa
As we all know that the majority of the population of Africa depends upon agriculture, so the performance of this sector gets hugely impacted by climate change. Norvergence studied various modeling results according to which, Southern Africa will be the hardest region hit by climate change.
Following are the economic consequences of climate change in Africa
- Climate change will put an adverse effect on the economies of countries that depend upon the commercial production of timber products.
- Changes in temperature, loss of biodiversity, malaria risk; these factors led to a decrease in tourism across the African continent.
Economic Impacts of Climate Change on Australia
Australia has been facing significant economic problems across a number of sectors because of climate change. The one sector that got affected the most is dairy. Many Australian researchers analyzed this sector with the help of a climate-biophysical response framework, climate scenario generator, and an economy-wide analytical framework. They found that with further increase in temperature and rainfall reduction, the dairy business is projected to decline at a faster rate.
Not only the dairy sector but Australia’s property market will also lose around $571 billion by 2030 and the loss of wealth due to agricultural + labor productivity will be around $211 billion.
The overall GDP will reduce by 1 percent every year.
Economic Impacts of Climate Change on Europe
In recent years, a number of reports are published that did a downscaled assessment of the economic costs of climate change in Europe. The rising temperature could result in an additional 132,000 heat deaths and river flood damage will rise to $17.5 billion.
It’s now clear that climate change poses economic risks beyond anything seen in this commercial world. If we fail to reduce global warming and other environmental hazards, the time will come when even the most expensive measures can do nothing.