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The Effect of Global Warming On Economy

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Downloads to date: N/A | Words: 700 | Submitted: 12-Feb-2009
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The Effect of Global Warming On Economy

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First, the global climate change has brought great impact on agriculture industry. Due to the global warming effect, the earth’s climate system has been disturbed. The weather has become unpredictable. This phenomena causes crops such as corn, tomato and malt to produce low yields. The increase of carbon dioxide in the atmosphere will help some plants to grow faster and more yield to be produced. (Wilson, 2001). Global warming with high temperature causes drought. Drought decreases the rainfall which can cause lands to be unsuitable for agriculture. Furthermore, global warming also affects aquatic system, which indirectly affects fishery industry. The warming of water causes fish extinct. It affected yield of fishery industry.

Second, insurance industry is another industry which is affected by global warming. Global warming causes natural disasters to occur. It threatens insurance industry and the people it protects. Natural disaster such as hurricanes and earthquakes affect the industry by increasing risks to health, life and property. It costs insurance industry great loss. (Mike et al. 2007). Insurance industry might face financial risks when they are asked to underwrite new technologies, such as, carbon trading and hydrogen vehicles. The financial risks are said to be unpredictable. (Mike et al., 2007) The cases of diseases such as epidemics or pandemics, respiratory and asthmatic problems, and heat-related illness might increases. Therefore, it will increase indirectly cost of personal medical care. (Mike, 2007)
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