The Economic
Impacts of Climate
Change
Climate change poses unprecedented economic challenges globally. Its far-
reaching effects touch every aspect of our economy and society. Understanding
these impacts is crucial for developing effective strategies to mitigate and adapt
to this global crisis.
by Rohan biswas 017
Introduction: Overview of
Climate Change and Its
Consequences
Rising Temperatures
1
Global temperatures continue to rise, leading to more frequent
heatwaves and altered weather patterns.
Sea Level Rise
2
Melting ice caps and thermal expansion cause sea levels to rise,
threatening coastal areas.
Extreme Weather Events
3
Increased frequency and intensity of hurricanes, floods, and
droughts disrupt economies worldwide.
Damage to Infrastructure:
Costs of Repairing and
Rebuilding
Transportation Networks Coastal Structures
Roads, bridges, and railways face Rising sea levels threaten
increased wear and damage from buildings and infrastructure in
extreme weather events. low-lying coastal areas.
Energy Systems
Power plants and transmission lines are vulnerable to storms and
temperature fluctuations.
Disruption to Agriculture: Crop Yields, Food Security,
and Supply Chain Impacts
Crop Yields Food Security Supply Chains
Changing weather patterns and extreme Reduced agricultural output leads to food Disruptions in food production and
events reduce crop yields globally. shortages and price volatility. Vulnerable transportation affect global supply chains.
Farmers face unpredictable growing populations face increased risk of Local and international markets
seasons and increased pest pressures. malnutrition and hunger. experience instability and economic
losses.
Effects on Human Health:
Increased Risk of Disease,
Heat-Related Illness, and
Mortality
1 Vector-Borne Diseases 2 Heat-Related Illnesses
Warmer temperatures expand More frequent and intense
habitats for disease-carrying heatwaves lead to higher rates
insects, increasing of heat stroke and
transmission rates. dehydration.
3 Air Quality Issues
Higher temperatures exacerbate air pollution, causing respiratory
problems and related health costs.
Ecosystem Degradation: Loss of Biodiversity,
Disruption of Natural Services
Deforestation Arctic Melt Ocean Acidification
Loss of forests reduces carbon sequestration Melting sea ice threatens Arctic species and Changing ocean chemistry harms marine
and disrupts local ecosystems. alters global weather patterns. life and disrupts fishing industries.
Economic Losses from Extreme Weather Events:
Hurricanes, Floods, Droughts, and Wildfires
Event Type Annual Global Losses (USD) Trend
Hurricanes $54 billion Increasing
Floods $36 billion Increasing
Droughts $22 billion Increasing
Wildfires $17 billion Increasing
Impacts on Energy and
Transportation Systems
Fossil Fuels
Extreme weather disrupts oil and gas production. Climate policies reduce fossil
fuel demand.
Renewable Energy
Climate change creates opportunities for clean energy growth. Adapting
infrastructure is crucial.
Transportation
Extreme weather affects air travel and shipping. New technologies emerge for
efficiency.
Societal Costs: Displacement, Migration, and Political
Instability
1 2 3
Climate Displacement Migration Pressures Political Tensions
Rising seas and extreme weather force Climate refugees seek new homes, Resource scarcity and migration lead to
communities to relocate, straining creating economic and social challenges conflicts, destabilizing regions and
resources. for host regions. economies.
Mitigation and Adaptation Strategies: Investing in
Resilience
Emissions Reduction Infrastructure Resilience Economic Diversification
Investing in renewable energy and energy Upgrading infrastructure to withstand Developing climate-resilient industries
efficiency reduces carbon emissions. climate impacts reduces long-term costs. creates new economic opportunities.
Carbon pricing incentivizes cleaner Nature-based solutions like mangrove Investing in education and reskilling
technologies and practices. restoration protect coastlines. prepares workforce for green jobs.
