University Report: ECON1064 Climate Change Impact on Australia & China

This economics report analyzes the impact of climate change on China and Australia, specifically focusing on its effects on the agricultural sector and trade relations. It examines how climate change may reduce the agricultural output of China, potentially benefiting Australian exporters. The report discusses the potential for climate change to reduce productivity in Australia's agriculture, fishery, and forestry sectors. It also offers recommendations for Australia to mitigate the negative impacts of climate change. Furthermore, the report includes an executive summary, literature review, methodology section and conclusion. The report uses input-output analysis and provides an overview of the Australian agriculture, forestry, and fishing industries.

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ECONOMICS ASSIGNMENT

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Impact of climate change on China and influence on agribusiness of Australia
Climate change is one of the major concerns for the world right not as it changes the
equations of economic power by making winners and losers. The losers due to climate
change are the countries which experience a reduction in the economic activity directly due to
climate change. On the other hand, countries that experience a long term benefit can be
termed as the winners from the changes in the world climate. Climate change is likely to
impact the agriculture sector of China significantly in the coming years. (Lausselet et al.
2017) stated that, due to the increase in the average temperature in different parts of the
country, the quality of the agricultural product will reduce and become costlier. This will
enable exporters such as Australia to capture the markets in China. Although China is among
the top-performing economies of Asia, the changes in the climate will increase the cost of
production of the agriculture sector more than the technology level can handle. In this
context, agricultural products being exported from Australia will get a competitive advantage
putting a lot of pressure on the agricultural industry of china. Therefore, clearly due to the
existing relationships in terms of trade between the two countries and climate change, China
will be the loser and Australia will be the winner (Tylecote, 2019). However, the positive
impact of climate change on the Australian economy can be temporary due to the
repercussions of the Chinese economy that can further influence the economy of Australia in
the long run.
Impact of climate change on the export of Australia
Climate change can reduce the productivity of many sectors of Australia including
agriculture, fishery, and forestry. Due to the increase in the average temperature in Australia,
the fishes may die and hence contribute to the increased cost of production for the fishery
industry (Alirezaei et al. 2017). Apart from that livestock owners can also feel the influence
of climate change as the changes in the temperature can result in deteriorating lactation of the
livestock leading to a lowered production. The climate change also influences the forestry
sector as well as the rise in the temperature in the Australian forest increases the chances of
wildfire. The country has already experienced a rise in the wildfire in the forest. The frequent
wildfire in the forest can disallow the workers to collect woods and honey from the forest
leading to a reduction in the quantity of production (Sovacool et al. 2017). These can directly
increase the prices of the products that are exported to other countries of the world leading to

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an eventual reduction in the export volume. Australian individuals can take these actions to
reduce the impact of climate change in the economy of Australia
1. Increasing use of a green source of imagery as a fuel
2. Use of solar power as a form to provide electricity in different parts of the country.
3. Reduction in the use of plastic has been stated to increase the impacts of climate
change.

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Reference
Alirezaei, M., Onat, N.C., Tatari, O. and Abdel-Aty, M., 2017. The climate change-road
safety-economy nexus: a system dynamics approach to understanding complex
interdependencies. Systems, 5(1), p.6.
Lausselet, C., Cherubini, F., Oreggioni, G.D., del Alamo Serrano, G., Becidan, M., Hu, X.,
Rørstad, P.K. and Strømman, A.H., 2017. Norwegian Waste-to-Energy: Climate change,
circular economy and carbon capture and storage. Resources, Conservation and
Recycling, 126, pp.50-61.
Sovacool, B.K., Tan-Mullins, M., Ockwell, D. and Newell, P., 2017. Political economy,
poverty, and polycentrism in the global environment facility’s least developed countries fund
(LDCF) for climate change adaptation. Third World Quarterly, 38(6), pp.1249-1271
Tylecote, A., 2019. Biotechnology as a new techno-economic paradigm that will help drive
the world economy and mitigate climate change. Research Policy, 48(4), pp.858-868.