Climate Change and Economics of the Globe

Global climate change is a crucial issue in economics and politics. Climate change has
strongly affected the way people run businesses. It is somehow connected with the shortage of
fresh water, the problem of hunger and epidemics, natural disasters, migration, as well as the
prospects for the development of a number of key sectors, such as energy, construction,
agriculture. International negotiations on the issue of the climate have become a battleground
state that determines the alignment of economic and political powers in the world, not only in the
next few years, but for decades. In this paper, I am going to research how global climate change
directly effects economics. Looking at such spheres as agriculture, energy, and world economics
way of thinking is going to be the plot of the paper.
First of all, climate change is directly linked to a farming activity on a territory. Climate
change will have a significant impact on an agricultural production. With a slight increase in the
temperature, the production of crops in the high latitudes might even increase. However, it will
be an offset by falling yields in lower latitudes due to the warming and changes in the
hydrological regime. On average, according to some forecasts, the increase in temperature by 1
C will lead to the decrease of the production of crops by 10% (Brown, p.70). Melting ice caps of
the Earth, rising sea levels, and an increase in floods and storms increases the vulnerability of
coastal areas. Some islands like Maldives will go under water in a few decades. The catastrophic
consequences of flooding of deltas of the largest East Asian rivers, where much of the worlds
production of rice is concentrated, might have a negative effect on its production. Climate
changes have direct and indirect negative effects for the health of the world's population. Direct
is the increase in morbidity and mortality due to the complexity of the organism to adopt to new

climate conditions. Indirect is the increase in morbidity and mortality associated with the
agricultural underproduction in some regions (Fauchaux, Joumni, p.21).
Financial and economic crisis showed the need to find new solutions and long-term
priority for the development of a green economy. In 2008-2009, the new facility for the
production of renewable energy was presented more than the production of non-renewable. In
2009, the amount of new generating energy imposed by wind power was 38 GW, from solar -7
GW. The share of bio-ethanol in gasoline exceeded 8%. More than 85 countries have developed
plans for the development of renewable energy sources by 2020 (REN21). The maintenance of
various governments in the investment in green technology is the pursuit of technological
leadership in the future, the desire to improve the efficiency and competitiveness of the economy,
an attempt to reduce the dependence on fossil fuels. Double dividend technology is now the main
engine of the international climate cooperation. As far as countries and companies are convinced
that green economy contributes to their development, it will continue. Once this confidence is a
bit at risk, the market will collapse.
Climate change and the system of actions to prevent it are critical for determining the
directions of the development of the worlds economy. In this regard, the active participation of
theUSA in the international system of climate control, the ability to express comfortable rules of
the game are the major competitive advantages. The negotiations around the new international
system of climate regulation is the main point for this advantage. The environmental problems of
climate talks are overshadowed by the pressure of national egoism in spite of the slogans about
the need of global cooperation to respond to the global challenge, the country continues to put
national interests above human. At the same time, international cooperation in combating climate
change is the only chance because the motive to it is the national pragmatism.

The adaptation to climate change is extremely important because it involves the solution
of a number of global problems. Such consequences of climate change as epidemics, hunger,
unsanitary conditions, are impossible to overcome without addressing the problem of poverty.
Looking at the agriculture can show that people on the planet cannot produce enough food for
the overpopulated planet. This happens due to the issues with climate change. Global economics
is in a very critical moment due to the energy crisis which again has a crucial effect on the global
climate. As prices went lower, it crude became more expensive which results people to dig more.
I think that it is important for the economist around the world to step into the for green
economics and do not forget that one pf the most important words n economics is scarcity.
An important part of the adaptation to climate change is to alleviate water and food shortages.
The negative effect of droughts, heat waves and natural disasters may be significantly reduced
through the development of health systems, especially in developing countries. It is obvious that
instead of separate half-measures for each of the directions of development of poor countries
must come to an integrated approach to solve global problems. Currently, they are all
interconnected as never before.

Works Cited
Brown, Lester R. "Plan B 4.0 Mobilizing to Save Civilization." (n.d.) Earth Policy
Institute. Web. 10 Oct. 2016.

Faucheux S., Joumni H. Economie et politique des changements climatiques. Paris, 2005.
Web. 10 Oct. 2016.
REN21. Renewables 2010 Global Status Report. Paris, 2010. Web. 10 Oct. 2016.
By Kathleen Maclay, Media Relations | October 21, 2015November 23, 2015, and
Kathleen Maclay. "Study Finds Climate Change Will Reshape Global Economy." Berkeley News.
N.p., 23 Nov. 2015. Web. 10 Oct. 2016.
"The Economics of Climate Change." (2004): n. pag. Web. 10 Oct. 2016.