Arnold Q.

Cuizon
BSIT 107I

CASE STUDY #2

The Economic Impact of Climate Change

The Economic Impact of Climate Change

Climate change is expected to have a major impact on the world economy. For
Philippines which is a country that depends so much on natural resources, the
economic impacts could be severe and disastrous to the people. Global warming
became one of the toughest natural enemy of the humankind. 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.
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 northern and
southern poles, 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.
The global warming can worsen the negative impacts in our macroeconomic sector in
many developing countries, and the positive market sector in developed countries will
all be negatively impacted. Climate change is a potentially catastrophic global nemesis
and one of the worlds greatest collective action problems. The distribution of causes
and effects is highly uneven across countries and across generations. Enormous
uncertainty surrounds existing estimates of future damages that may result from climate
change, but these potential damages are to a considerable extent irreversible and may
be catastrophic if global warming is unchecked. 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. 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. 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 conclusion, 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.