A Detailed Analysis of the Impacts of Global Warming on Economy

This essay examines the significant impacts of global warming on the global economy, highlighting its interference with growth zones and shorelines. It focuses on the agricultural sector as a primary area of impact, noting how rising temperatures and changing climatic conditions force species migration and extinction, thereby affecting tourism and farming. The essay also discusses the potential for increased migration from rural to urban areas due to climate change, leading to urban congestion, reduced wages, and inflation. Furthermore, it addresses the likelihood of increased catastrophes, such as floods, which damage infrastructure and divert resources from economic growth to repairs. The essay concludes by emphasizing the potential for mass migration and social disruptions leading to civil unrest, ultimately hindering economic growth and underscoring the urgent need for measures to reduce global warming's effects. Desklib provides more resources and solved assignments for students.

Running Head: IMPACTS OF GLOBAL WARMING ON THE ECONOMY 1
IMPACTS OF GLOBAL WARMING ON THE ECONOMY
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IMPACTS OF GLOBAL WARMING ON THE ECONOMY 2
Considering the fact that Global warming has its major impacts the geography where
global economy generally operates, it has interfered with the growth zones as well as the
shorelines. It has largely changed the surroundings where people feel comfortable living.
The effects of global warming on economic growth have its roots of the agricultural
sector and which is the backbone of most economies. To understand the concept of these impacts
the general model below was used.
As a result of global warming, the average temperatures of different places have risen and
that is an implication that the microhabitats where species of plants and animals initially could
do well will be forced to move or completely disappear by dying out (Burke, Hsiang & Miguel,

IMPACTS OF GLOBAL WARMING ON THE ECONOMY 3
2015). Also, the fauna that mainly evolved in such surroundings will either be forced to move
with the microhabitat, adapt to the new conditions or go extinct and for that matter there will be
high extinction levels which will have great impacts on the tourism sector of the world economy.
These fluctuations in climate change will disadvantage the economies which largely depend on
tourism sector.
Global warming is also going to have huge impacts on the farming sector of the
economy. In some areas where climatic conditions used to support certain crops may become too
arid or too wet for those crops to currently exist (Burke, Hsiang & Miguel, 2015). Considering
the temperatures on the other hand, some areas which used to have favorable temperatures to
support certain kinds of crops are likely to become too cold or too hot for such crops to exist.
This will be a heavy blow on many economies globally in consideration to the fact that
agriculture is the backbone of most economies.
Following the climatic changes as a result of global warming, people will be forced to
migrate from rural areas to urban areas in search of jobs to sustain their livelihood especially
those who will have been affected by the climatic changes negatively (Desmet & Rossi, 2015).
This will create congestion in urban areas and which will increase the supply for human
workforce under low demands resulting to reduced wages and salaries. This will in turn cause
inflation to the affected economies
As a result of global warming, many catastrophes are likely to be witnessed and which
will lead to damage of property and infrastructure. For instance, floods which are associated with
the rise in the sea level will become an order of the day (Shao, Keim, Garand & Hamilton, 2014).
Normally, floods are highly destructive as it has been witnessed from the few incidences in the
history. So, resources which would have been used to facilitate economic growth will be

IMPACTS OF GLOBAL WARMING ON THE ECONOMY 4
channeled to repair of infrastructure such as roads, railways, bridges, airport runways, dams,
seawalls and powerlines. This is a drawback on the economic sector.
Lost productivity is also likely to be witnessed as a result of climate changes which have
direct links to global warming. This is as a result of disruptions to the normal activities like
work, tourism, fisheries, transportation and agriculture (Shao, Keim, Garand & Hamilton, 2014).
These and other impacts will definitely harm trade. They are likely to be witnessed as a result of
severe rainfalls and snowstorms. Achieving economic growth under these conditions therefore
becomes more difficulty.
As a result of climatic changes in different parts of the continent, mass migration is likely
to be witnessed and which is a recipe for security threats. This is because mass movements and
social disruptions are known to cause civil unrest following the struggle for survival which is
likely to be witnessed in the areas where congestion is high (Shao, Keim, Garand & Hamilton,
2014). Civil unrest is characterized by property damage and other unintended consequences.
With such and other occurrences, no economy can achieve its expected growth rates in however
much it tries.
From the above observations, it is clear that global warming will have huge impacts on
the global economy ranging from perceived inflations to increased unemployment rates and
social unrest in the world. People should therefore take the necessary precautions to ensure that
global warming is reduced in order to lessen the impacts of this phenomenon.
References
Burke, M., Hsiang, S. M., & Miguel, E. (2015). Global non-linear effect of temperature on
economic production. Nature, 527(7577), 235.

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Desmet, K., & Rossi-Hansberg, E. (2015). On the spatial economic impact of global
warming. Journal of Urban Economics, 88, 16-37.
Shao, W., Keim, B. D., Garand, J. C., & Hamilton, L. C. (2014). Weather, climate, and the
economy: explaining risk perceptions of global warming, 2001–10. Weather, Climate,
and Society, 6(1), 119-134.