Sustainable Planet Today

In a previous post I discussed the environmental effects associated with global warming. Today I would like to focus on the economic effects. While no one can predict the actual effects global warming will have, we can and should take a hard look at the possibilities.

A report on the potential economic effects of global warming that has been widely circulated is the Stern Review released in 2006 by Lord Stern for the British Government. The Stern review, though also widely criticized by economists, estimates the effects from extreme weather conditions. The report’s foremost conclusion suggests the benefits of early action on climate change far outweigh the associated costs. Stern proposes that the use of one percent of the gross domestic product of the entire world invested each year is required to avoid the worst possible effects of climate change. The report further states that, if this amount of change is not implemented, the global gross domestic product could be reduced by up to twenty percent!

The United Nations Environment Programme, which coordinates United Nations environmental activities, has stated that the economic effects of global warming are likely to be felt mostly by banks, agriculture, and transportation industries.

Boiling this all down to the individual level reveals some startling thoughts. For example, the average middle class family in the United States will likely face many challenges including the following:

• Layoffs. As the total economy is affected by climate change, companies that once seemed stable will probably be forced to cut spending. Lower sales means less income which means less money to meet payroll.
• Food shortages. As stated above, two of the industries that will likely be hit hard by climate change are agriculture and transportation. Our food source is the farm. We have been so ingrained to simply purchase our food from a grocery store that many children believe it is produced there. The truth is, without a thriving agricultural industry, the world supply of food will be compromised. Add to that the growing global population and a real problem could be on the way. The grocery stores rely heavily on the transportation industry to deliver food. If it falters, the problem will continue to escalate.
• Money shortages. For the average middle class American, a shortage of money produces many stresses. We have bills to pay, children to feed, and medical needs that all require money. Also, the stress of money woes puts a big strain on relationships within the family.

I’m not a big fan of trying to scare anyone. I simply wish to point out some possible effects on the economy that global warming could have. I also hope to make people and our governments more aware of the situation. It’s good practice to be prepared for what may lay ahead on our planet.

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