Global warming and economy

Global warming effects on the economy


Global warming has taken center stage in the international society over the last decade. The arguments involved in understanding the harm of global warming and taking policies to reduce its harmful impacts are the major environmental challenge of the modern age. Global warming brings about one of the most serious threats to the global economy. However, a careful research at the issue reveals that the there is no obvious solution as to how fast nations should act to reduce climate change. This paper is divided into two sections to analyze the impacts of global warming to the global economy. In the first section, there are six arguments about the issue. The last section is about the conclusion of the issue.

Arguments and discussion about the issue


There is little scientific doubt that the world has faced with a series of geophysical changes that are caused by global warming. The arguments about the issue are what consequences have been taken by the issue. The most common viewpoint of the consequences is the disasters caused by the global warming are the main impacts on economy. Folds and storms are more dramatic, and heat waves are getting more and more terrific. Rivers freeze later in the winter, melt earlier in spring. In the Russian Arctic, higher temperatures melt the permafrost, causing the sea level is rising. Therefore, the normal life of the disaster areas are interrupted which lead the whole economic activities into palsy (IPCC, 2007). The global warming can worsen the negative impacts in net negative market sector in many developing countries, and the net positive market sector in developed countries will all be negatively impacted.


Some scholars think global warming seriously affects agricultural economy, especially in developing countries, which rely heavily on agriculture as a source of economic growth. Cline asserts that developing countries is much more danger than industrial countries as global warming worsens (Cline, 2007). He also estimates that the global agricultural output capacity will decline 3 percent by the 2080s (Cline, 2007). The reason why the global warming can decrease the output of agriculture is due to climate warming can result in plant diseases and insect pests, soil erosion and fresh water salinization. There are also studies on the potential impact of global warming on abnormal coloration of fruit. MAFF finds the abnormal coloration of grapes is attributable to global warming because high temperatures restrain the formation of anthocyanin and undermine grape quality (MAFF, 2007). Southgate and Sohngen asserts that agriculture is the sector in which the economic consequences have been scrutinized (Southgate and Sohngen, 2007).

Labour force

Labour force is the fountain of economy. If the safety of labour force is under threat, the economic recession will be inevitable. Managing the health effects of global warming become an unavoidable argument in modern society. Some researchers even regard the climate change is the biggest global health threat of the 21st century (Costello and et al, 2009). Malnutrition, diarrhea, cardiopulmonary disease and communicable disease can increase the cost of health care and governor's budget for health. Heat wave, flood and drought make for high incidence and death rate. The expansion of propagating scope and media of disease make the public health service over-burdened. In American, California's public health cost from air pollution is very high, and results in billions of dollars in health costs every year from premature deaths and medical interventions (California Air Resources Board, 2009). All the negative results effect the normal economic production and aggravate the financial burden of government.


Energy is regarded to be one of the most critical elements for the achievement of stable economic development. Global warming is regarded as having important effects in energy: energy price, consumption, production and supply. For example, global warming means the reductions in heating requirements and increase in cooling requirements for building (Wilbanks et al, 2008). The temperature change affects the consumption of energy because of the demand of people. Global energy consumption has almost doubled during the past 30 years and is expected to keep rising. Fossil fuel is being consumed at a striking speed but is today's main cause for global warming. This trend is so significant that effective measures are necessary to rationally assign energy consumption and maintain economic growth as well.

Travel industry

Tourism is becoming increasingly important in the economy of many countries, such as Maldives. Threaten of global warming to natural environment means many resorts are in danger. Sea level rise, severe storms and snow melt are all can affect the geographic feature of scenic spots. The natural environment and climate conditions are very important in determining the attractiveness of an area as a holiday resort. The low elevation of the Maldives archipelago makes them especially vulnerable to sea level rise, which means once the Maldives archipelago is submerged, the economy of Maldives will also be submerged. Because of temperature rise, the European Alps, a famous ski resort, shows a decline in the number of days of snow cover, especially for the resorts at low altitude (Bultot et al, 1994).

New energy economy

As global warming is happening fast, it is urgent for people to reduce the exhaust emission. The pressure makes people use new energy to replace the application of fossil fuel. Nations makes the shift to cleaner energy to respond to the aggravating global warming and the growing demand for energy – it is the one and only determination for the sustainable economic development in industrialized society at present. This choice actively challenges the high temperature crisis and stimulates another economic development of energy. It is the new break point for energy economy and opportunity for new job.


In summary, global warming generates serious threats to the economy. However, it is hard to determine which field is influenced most. The impact of global warming on most of these fields is uncertain, which makes the arguments and discussion about the issue meaningful. The most imperative thing is not working out endless arguments, but realizing the severity of the negative effects of global warming and taking action to reduce the damage.


Bultot et al, (1994), Effects of climate change on snow accumulation and melting in the Broye catchment, Climate Change, pp, 339-364.

California Air Resources Board. (2009). Quantified Health Impacts of Air Pollution Exposure. [Online], Available: [12 Feb 2010].

Cline, R, W, (2007). Global Warming and Agriculture- Impact Estimates by Country. Peterson Institute.

Costello, A and et al. (2009). Managing the Health Effects of Climate Change. The Lancet Commissions, pp, 1693.

MAFF, (2007). Impact of Global Warming on Agriculture, Forestry and Fisheries and Possible Countermeasures in Japan. Report on Research and Development in Agriculture, Forestry and Fisheries No.23. Ministry of Agriculture, Forestry and Fisheries, JAPAN.

IPCC, (2007). (Full free text). Climate Change 2007: Synthesis Report. Contribution of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. [Core Writing Team, Pachauri, R.K and Reisinger, A. (eds.)]. Geneva, Switzerland: IPCC.

Southgate, D and Sohngen, B. (2007). Weathering Global Warming in Agriculture and Forestry. International Policy Press. pp, 3.

Wilbanks, J, T and et al. (2008). Effects of Climate Change on Energy Production and Use in the United States. U.S. Climate Change Science Program.

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!