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The Economics of Global Warming

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Global warming can prove to be a costly occurrence. For many reasons, financial considerations have already been impacted. For anyone who looks to the wallet for an indicator of disaster, trouble can be seen in global warming.

The deadly and destructive storms that are now being seen have caused tremendous financial losses. Hurricane Katrina cost roughly 81 billion dollars in damage, and the actual rebuilding has barely even begun. Storms like Katrina have most likely been boosted to their extreme levels of force by warm ocean waters. These are caused by global warming.

Agriculture can be spoiled by global warming. Crops die during droughts brought on by global warming. Storms intensified by global warming can damage agricultural buildings and injure animals. Floods resulting from these storms can drown out crops before they can be harvested.

This all translates into lost revenues for both farmers and investors. It also means higher prices for consumers of agricultural products. Consumers already know what it is like to pay exorbitant prices for foods that have been damaged while in the fields. If global warming continues on its present course, this will be a common occurrence.

Gasoline prices have an effect on the economics of communities. When gas prices are high, people will patronize business establishments that are close to their homes. This hurts the chances of success for a business that is not in a heavily populated area. Global warming is directly affecting the economics of businesses in this way.

The family economics of global warming are undeniable, too. As the climate changes, more energy is needed to cool houses. Those extra degrees of heat in the atmosphere mean that families will have to set their thermostats higher, or pay a higher price.

Sometimes it is the poorer families that pay for global warming the most. For example, new cars are outfitted with a new kind of air conditioning system that uses environmentally friendly Freon. A poorer family might have an older car that does not have this type of system.

However, if their air conditioner needs Freon, they might have to pay several hundred dollars to have the new system put in to use the new Freon. This will help the cause of preventing global warming. At the same time, the family will be paying for the mistakes of the past.

In many regions, everyone pays for the energy mistakes of earlier times. Coal burning power plants are now being refitted to reduce emissions. This will have a big impact on preventing global warming. Yet, the economics of it show that people at the present time have to pay with higher utility bills to make this advantage come true.

There are thousands of ways that global warming is affecting the world's economy at this moment. People are paying for the harm global warming is doing. They are also paying for adjustments to their homes, cars, and city infrastructures to reduce global warming. With time, changes will be completed. If everyone helps, these costs should go down.

 

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