Scientists warn that climate change has a bigger negative impact on economy than one would expect.
Researchers found that a hotter Earth will lower production rates and national economies of most countries. While some countries like Russia and Canada will most likely benefit from the rising temperatures around the globe, the U.S. economy is expected to take a dip by as much as 36 percent by 2100 due to the effects of climate change.
A more distinct differentiation will show between richer and poorer countries as well, as researchers also proved that developing nations will experience climate change impact on economy more painfully than developed ones.
"There isn't a single region that thinks we can avoid all the impacts of even 2 degrees of warming by adaptation – let alone 4 degrees," said climate change researcher Dr. Rachel Warren of the University of East Anglia.
But how will climate change impact the economy, exactly?
Aside from temperature changes, one of the biggest and most painfully felt negative impact is the worsening weather-caused disasters. Tropical storms, cyclones and heavy rains bringing floods may destroy workers' homes, office buildings, crops and production lines.
Rises in sea levels and unusually hot or cold temperatures are also dangerous, leading to droughts, decreased yields in agricultural businesses and landslides that could affect the mining economy.
Governments will have to spend millions to recover from these losses and provide for people affected by these calamities. While all countries may feel the effects of climate change at one point or the other, developing nations in tropical and subtropical areas are the ones who will feel it strongest.
"It's the poor suffering more during disasters, and of course the same hazard causes a much bigger disaster in poorer countries, making it even poorer," reported Maarten van Aalst, director of the Red Cross climate center.
Decreased agricultural yields will eventually translate to decreased production in many important resources, especially food. This may then potentially trigger conflicts that will cost nations even more money.
"The things that drive conflict are sensitive to climate, particularly poverty and economic shocks," Professor Neil Adger from Exter University said. "If there is a decrease in food supply or lots of people are pushed into poverty...it creates the environment where you are susceptible to conflict,"
What researchers concluded is that economic growth tended to peak at an average environment temperature of 13 degrees Celsius, but productivity fell sharply once it got hotter.
These findings however, are not enough to convince climate change detractors, as U.S. politicians remain divided over the urgency of this issue and the little research available on the effects of climate change doesn't help. Experts are also divided about the results of this research, with some calling it a significant look in the future of economics, others dismiss it as findings without substantial evidence to back it up.
What can be agreed upon is that the findings on the impact of climate change in the economy will be able to spark an engaging debate among economists and other experts.
