The Economics of Global Warming: Why We Are All Doomed
Global warming is a pretty big deal. Most people admit that it is real, but not many people do much about it. Some people are just lazy, but some may have a good reason (although some will use a good reason because they’re lazy). One of those reasons may be because of the affect of changing to more eco-friendly energy sources will have on the economy. The oil and coal industries are huge. They manage to produce a lot of money. If humans were to change to alternative energy sources, these industries would fail, ruin our economy, and make many people jobless.
However, when going through my RSS feed, I found an article about how global warming is already affecting the economy. In the article Fiona Harvey, an environmental corresponded, wrote :
Major economies will also take a hit, as extremes of weather and the associated damage – droughts, floods and more severe storms – could wipe 2% of the GDP (for those of you who don’t know, this stands for gross domestic product) of the US by 2030, while similar effects could cost China $1.2 trillion by the same date.”
Harvey also got an interview with Sheikh Hasina, prime minister of Bangladesh, who explained how global warming was affecting his country’s economy:
“A 1C rise in temperature [temperatures have already risen by 0.7C globally since the end of the 19th century] is associated with 10% productivity loss in farming. For us, it means losing about 4m tonnes of food grain, amounting to about $2.5 billion. That is about 2% of our GDP. Adding up the damages to property and other losses, we are faced with a total loss of about 3-4% of GDP. Without these losses, we could have easily secured much higher growth.”
What is explained in the article is that the huge amounts of heat and natural disasters caused by global warming cause repairs and loss of certain products to force countries around the world to spend huge amounts of money, so global warming is already forcing our economy to start diving.
Essentially, humans are now stuck in a predicament when it comes to the economy. If we continue to do nothing about global warming because of how the change will affect our economy, our economy will take a dive anyways because of disasters mostly caused by global warming. Farmers will also lose out because the heat will be too unbearable for their crops. But, if we do decide to do something about global warming, then many major companies will fall, and many will go jobless, and the economy will get even worse.
Imagine that you are inside of a room. There are two doors, both of which lead to the same place but the paths they go on are different. So I leave you with this question: What if there was a third door? And if so, which path would it go along?