Global Warming's Economic Impacts and Public Policy Solutions

This economics report examines the multifaceted impacts of global warming on the economy. It begins by outlining the scientific consensus on global warming, emphasizing the role of human activity, particularly carbon emissions, in driving rising global temperatures. The report then delves into the economic consequences, including inflation driven by infrastructure damage and resource scarcity, reduced productivity due to water shortages and extreme weather, and increased energy costs. These factors, along with damage to capital stock and reduced productivity, are shown to negatively affect various sectors, including agriculture and insurance. The report also evaluates various public policies aimed at mitigating climate change, such as the Climate Change Act 2008, renewable energy initiatives, the Kyoto Protocol, and the CRC Energy Efficiency Scheme, assessing their effectiveness in addressing the economic challenges posed by global warming. The analysis highlights the need for a comprehensive approach to managing the issue.

Economics

Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
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INTRODUCTION
Global warming is the big issue that occurs due to changes in temperature. Many of the
scientists are working on the issue of climate change and they observed that temperature is
increasing day by day that causes harm to the earth (Chung and et.al., 2014). It is gradually
heating the surface of earth, ocean. It is fact that average temperature of earth has been raised 1.4
degree Fahrenheit since last few years. Global warming is harmful for entire globe; previous
records show that extreme heat waves are the reason of thousands of death. Present report will
discuss the impact of climate change if trend towards global warming continues. Several public
policies will be described in order to manage this issue. These market based policies will be
critically evaluated in this study in order to identify their effectiveness (Pittelkow. and et.al.,
2013).
MAIN BODY
Global warming
Over the past few years the temperature of global has been increased at fastest rate in the
recorded history. As per the report of intergovernmental Panel on Climate Change; Human are
the main reason or dominant cause of warming (Brown and et.al., 2016). One of the main causes
of increasing warming is too much Carbon Dioxide in the atmosphere. Scientists has recorded
the level of CO2 which has been reached from 280 parts per Million to 400 PPM today. Burning
Fossil Fuels, Deforestation etc are many reasons of increasing amount of the Carbon Dioxide in
the surroundings. In addition to this green house gasses are another reason of increasing warming
(Zhang and et.al, 2016). These gasses absorb sunlight and solar radiation that harm the surface of
the earth badly. Methane emissions from the animal and agriculture are another cause of global
warming. Furthermore, uses of chemical fertilizers increases nitrogen that affect the groundwater
and due to this wealth of human being get negatively affected.
Global warming is the dangerous signal for the earth because due to this level of sea gets
increased that will spoil thousands of houses and agricultural lands. Apart from this more Killer
storms are the signal of high heat (Feidt, Kheiri and Pelloux-Prayer, S., 2014). It is statistical fact
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that global warming increases intensity of extreme storms across the world. Pollution is another
reason that impact negatively on the earth. Due to air and water pollution health of the person is
getting affected and that increases many diseases among them. Coal burning power plan is the
main polluter, apart from this transportation is another cause of this issue due to this level of
Carbon dioxide is increasing rapidly, that is the main reason which generates 1.7 billion tons of
CO2 emission in a single year (Zhou and et.al., 2014).
There are many consequences which have to be faced due to such global warming such
as melting glaciers, rising sea level, infectious disease among human being etc. Government is
putting its hard efforts to make effective control over the global warming but the situation is very
bad so policies, principals needed time for making improvement in such type of extreme
condition (Gerten and et.al., 2013). Increasing temperatures is changing the situation of climate
badly, due to this water cycle has been changed and rainfall patterns have been affected. That is
creating the condition of water shortage in globe. Intense amount of distress is taking place due
to water shortage because it is affecting more than 2.5 million people those who live in the dry
regions or called deserts. This process of desertification impact on the economic condition as
well, that harm the agricultural business and many farmers have to bear critical financial
problems (Rose. and et.al., 2017).
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Illustration 1: Annual Greenhouse gas Emissions by sectors
Source: (Causes of Global Warming: the Human impact, 2017)

Economic impact of increasing global warming
Climate is changing rapidly due to increasing global warming. It is very important for the
government to make control over in such situation otherwise it will destroy the entire earth and
human being. It is true that rise in temperature may rapidly damage the economic condition of
the country. If this trends remain continuous then it would impact on the economy (Ming, Liu.
and Caillol, 2014). Some of the economic impact are as following, if government do nothing on
this issue:
Inflation
Climate change is the drastic issue that is creating big mess to the entire globe. Due to
global warming and climate change inflation will get increased. That will affect the income
status of the population badly. Due to this, properties and infrastructure is getting damaged that
is affecting the financial condition of the nation. Government has to put lots of amounts on
recovering these losses (Mauritsen, 2016). Loss of productivity due to water shortage, security
threats, mass migration affect the overall business profitability thus, import and exports get
majorly affected. These are the reason that enhance inflation in the nation if this trend of global
warming remain same and government do nothing on it. One of the biggest example of economic
damage is Hurricane Sandy which has destroyed the New York badly. Apart from this due to this
demand and supply get reduced that impact on the productivity and indirectly or directly impact
on the economic condition of the nations (Takemi, Ito. and Arakawa, 2016).
Reduction in capital stock and productivity
Climate change damages the properties and natural resources due to this many of the
business are unable to operate their business. That is why available stock is getting down that
impact negative on the economic condition and due to this these firms are unable to contribute in
the economic development of the nation. That indirectly affect the per capita income of the
population and their livelihood get affected. Government is required to make immediate action
on controlling over this climate change situation otherwise overall condition of the nation will
get down and it will reduce employment opportunities to great extent (Valle and et.al., 2014).
Higher energy cost
It is the major impact of the global warming due to this inflation is increasing. As the
climate has become extreme warm and now it demands energy to cool it. That is why overall
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resources of the nation is getting down and these transactions increase burden on the country.
There are limited resources of renewable energy that is why authorities have to import it from
other nation at higher cost. That increases financial burden on the countries and due o this
economy of the region get affected (Janz. and et.al., 2016).
Reduce productivity of big organizations
Climate change or global warming is he major issue that impact negative on the many
business such as agriculture, insurance, energy etc. In the year 2011 natural disaster have taken
place and due to this insurance firms have to face huge loss because they had to give huge
amount to suffered person of the nation. After this accident, Mark Carney governor of Bank of
England has said that climate change is the major risk on the insurance business, that has
enhanced the cost of the companies to great extent (Mauritsen, 2016). Apart from this agriculture
business is another sector which go affected by this global warming. Due to high temperature
water shortage issue is taking place that is creating problem for the farmers and they are unable
to do their activities. Climate change giving huge loss to such entities and they are unable to
generate profit. That indirectly impact on the economic condition badly.
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Illustration 2: Economic impact of global warming
Source: (Causes of Global Warming: the Human impact, 2017)

Thus, it can be said that it is essential that government takes necessary action to make
control mover climate change otherwise continuous trend will damage the overall financial
resources of the nation and it will harm the economic condition of the country (Chung and et.al.,
2014).
Public policies for reducing this issue
Climate change is the major issue that is increasing due to global warming. Government has
made several legislation that can help in reducing impact of this serious issue. Description of
these policies are as following:
Climate change act 2008:
Authorities have made plan to reduce effects of greenhouse gas emission. It is the policy which
highlights the commitment of UK government to take immediate international action which can
help to tackle serious issue of global warming. Under this act climate change committee (CCC)
has been formed by the authorities which advice government on emission and report directly to
the parliament in respect to progress (Gerten and et.al., 2013). Infrastructure act 2015 has been
introduced by the government under which CCC has advised the authorities on onshore
petroleum in the year of 2016.
Use of renewable energy
It is another legislation which has been introduced by the government under which they
have made it compulsory for expand use of renewable energy. In this authorities have planned to
be less depended on coal and fossil fuels. Under this it has been made compulsory that fuel
efficiency vehicles must be used in the nation and it must be constructed in such manner that can
reduce oil use amount (Takemi, Ito. and Arakawa, 2016).
UNFCCC’s Kyoto protocol 1997
In this every country has given target and all are working to control the pollution and
other activities which are increasing heating on the surface. In the conference The Cancun
Agreements has made in which finance, technology and human resources has been given by the
authorities so that developing nations so that they can adopt sustainable paths of low emission
(Pittelkow. and et.al., 2013).
CRC Energy Efficiency Scheme
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It is another policy of government for reducing the
global warming. In which concerned authorities provide incentives to public and private sectors
so that they can take immediate action to use energy efficient technologies in the country. That
can help in saving the natural resources and can cool the environment (Feidt, Kheiri and Pelloux-
Prayer, S., 2014).
These all policies are effective and can give optimistic results to the
nation. CRC Energy efficiency scheme in which authorities plan and innovative technologies
which can support in reducing the cost of energy. Kyoto protocol is the great concept if these
policies are implementing in each nation carefully then it will support in achieving goal of the
countries to great extent. On other hand it can be said that these all policies are market based, if
there is some control have been done by the authorities on uses of energy or gases then it may
affect the profitability of the big organization that indirectly will affects the economy of the
nation (Janz. and et.al., 2016). Kyoto protocol defined that climate change policies which have
been designed to encourage reduction through market mechanisms.
Use of renewable energy is another policy which is introduced by the government to
make control over the environmental condition. To make it successful authorities are making
partnership with big organizations those which can give technical and human resource support so
that overall aim of the nation can be achieved. There are many other initiatives which have been
taken by the concerned authorities but these were not successful. One of the great examples of
this is Bush administration initiative which was the voluntary greenhouse gas reduction program
(Pittelkow. and et.al., 2013). These was not successful because aim of the initiative have got
changed it was focusing on the carbon efficiency rather than reduction.
Inclusion of agriculture in cap and trade is the great policy of the government. In this
authorities have grouped the small farmers in which they can share their cost and by this way
individual will find it economical to trade. These are effective policies but to some extent
because developing nations are not having sufficient resources to implement these initiatives
(Mauritsen, 2016).
CONCLUSION
From the above report it can be concluded that global warming is the biggest issue in the
countries due to this economic, surrounding conditions are getting bad. Due to increasing heat
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surface of earth and ocean are getting affected which is creating problem for the entire globe.
Though, government has made many policies to reduce the level of heating but still these is not
that much effective. There is required to take immediate action to control over air and water
pollution so that this situation can be controlled.
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REFERENCES
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warming?.
Chung, C.T. and et.al., 2014. Nonlinear precipitation response to El Niño and global warming in
the Indo-Pacific. Climate dynamics. 42(7-8). pp.1837-1856.
Feidt, M., Kheiri, A. and Pelloux-Prayer, S., 2014. Performance optimization of low-temperature
power generation by supercritical ORCs (organic Rankine cycles) using low GWP (global
warming potential) working fluids. Energy. 67. pp.513-526.
Gerten, D. and et.al., 2013. Asynchronous exposure to global warming: freshwater resources and
terrestrial ecosystems. Environmental Research Letters. 8(3). pp.034032.
Janz, B. and et.al., 2016, April. Greenhouse Gas Emissions and Global Warming Potential of
Traditional and Diversified Tropical Rice Rotation Systems including Impacts of Upland Crop
Management Practices ie Mulching and Inter-crop Cultivation. In EGU General Assembly
Conference Abstracts (Vol. 18, p. 3904).
Mauritsen, T., 2016. Global warming: Clouds cooled the Earth. Nature Geoscience. 9(12).
pp.865-867.
Ming, T., Liu, W. and Caillol, S., 2014. Fighting global warming by climate engineering: Is the
Earth radiation management and the solar radiation management any option for fighting climate
change?. Renewable and Sustainable Energy Reviews. 31. pp.792-834.
Pittelkow, C. M. and et.al., 2013. Yield-scaled global warming potential of annual nitrous oxide
and methane emissions from continuously flooded rice in response to nitrogen input. Agriculture,
ecosystems & environment. 177. pp.10-20.
Rose, S. K. and et.al., 2017. The Paris Agreement and next steps in limiting global
warming. Climatic Change. 142(1-2). pp.255-270.
Takemi, T., Ito, R. and Arakawa, O., 2016. Assessment of natural hazards due to a category-5
extreme typhoon under global warming by dynamical downscaling experiments.
Valle, M. and et.al., 2014. Projecting future distribution of the seagrass Zostera noltii under
global warming and sea level rise. Biological Conservation. 170. pp.74-85.
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Zhang, L. and et.al., 2016. Response of the North Pacific tropical cyclone climatology to global
warming: application of dynamical downscaling to CMIP5 models. Journal of Climate, (2016).
Zhou, Z. Q. and et.al., 2014. Global warming–induced changes in El Niño teleconnections over
the North Pacific and North America. Journal of Climate. 27(24). pp.9050-9064.
Online
Causes of Global Warming: the Human impact, 2017. [Online] Available through:
<http://globalwarming-facts.info/causes-global-warming-human/>. [Accessed on 13th May
2017].
Global Warming 101, 2017. [Online] Available through: <https://www.nrdc.org/stories/global-
warming-101>. [Accessed on 13th May 2017].
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