Wednesday, June 18, 2008

Economics of Global Warming

Economics Of Global Warming

Causes of global warming:

  1. Increase in population. The number of population has now reached a threatening stage where the planet is no longer able to support. Third World countries are responsible for this. More people mean more cars on the road, thus increase of the emission of carbon into the atmosphere. Also increase in population leads to an increase in consumption of goods which eventually leads to more garbage. Other than landfill, some choose to dispose by incineration

  2. Rapid industrialisation. This has led to more factories being set up to fulfill unlimited human wants. As a result air pollution is worsen along with the emission of carbon monoxide from cars. Don’t forget that more forests & trees have to be sacrificed along the way

Economic consequences of global warming:

1. Agriculture. Global warming will result in severe draught & the worst hit countries will be Africa as most of the population relies on rain-fed agriculture for their livelihoods. This will directly lead to famine. Other agriculture activity such as tea planting will also be affected in countries like Ceylon & Malaysia

2. Death of livestock. It can happen via 2 ways. First, death due to unbearable heat. Second, shortage of food & water even for farm animals. This too may lead to famine

3. Spread of disease. Acute shortages of water will inevitably force some people to drink from contaminated source & this will lead to various water-related disease such as cholera

4. Greater increase in demand for clean water for consumption due to dehydration

5. Firms may need to incur opportunity cost in their capital expenditure. More firms are required to invest in clean technology such as wind power farm & solar energy which may cause them billions of pounds

6. Crippled the economy of a country. Again many Third World countries will be affected as their core economic activity is agriculture. This will further push them into the vicious cycle of poverty besides starvation

7. Change in ecosystems. As global warming causes sea levels to rise & weather to change, some species may be forced out of their habitats & possibly to extinction due to inability to adapt to change in conditions

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