Economic Impacts

Question 1

Loss of productivity and economic growth

Answer 1

Climate change can negatively impact economic productivity by reducing crop yields, affecting human health, and damaging infrastructure.

Question 2

Costs of adaptation and mitigation

Answer 2

The costs of adapting to the effects of climate change and reducing greenhouse gas emissions can be significant.

Question 3

Damage to property and infrastructure

Answer 3

Climate change can cause damage to property and infrastructure due to sea-level rise, flooding, and extreme weather events.

Question 4

Disruptions of trade and supply chain

Answer 4

Changes in climate can disrupt trade and supply chains, affecting industries such as agriculture, fishing, and tourism.

Question 5

Loss of ecosystem services

Answer 5

Climate change can lead to the loss of ecosystem services, such as pollination and water purification, which have economic value.

Question 6

Increase in insurance costs

Answer 6

Climate change can increase the costs of insurance and reinsurance due to increased frequency and severity of extreme weather events.

Question 7

Increase in energy prices

Answer 7

Climate change policies aimed at reducing greenhouse gas emissions can lead to higher energy prices.

Question 8

Changes in investment and finance

Answer 8

Climate change can affect the availability and cost of capital, as well as the risk profiles of different types of investments, leading to changes in investment and finance.

Question 9

Distribution of wealth and income

Answer 9

Climate change can lead to the redistribution of wealth and income, as some regions and industries may be more affected than others.

Question 10

Developed - developing countries

Answer 10

Climate change impacts are likely to be more severe for developing countries due to their greater vulnerability and lower adaptive capacity.