Climate mass migration. As a result, climate change

Climate change can have a serious impact on different aspects of the Earth. It increases the frequency and severity of natural disasters. It raises sea levels to the point that they could submerge major coastal settlements. Colder regions may benefit early on as warmer temperatures make these regions more habitable and productive. However, the rest of the world may not be as lucky. Climate change will likely cause the destruction of property and infrastructure, lowered productivity levels and mass migration. As a result, climate change will most likely have a negative effect on the overall economic output around the world (Wade et al., 2015). This paper will explore the economic consequences of climate change. The increase in the severity of natural disasters will bring with it an increase in the cost required to repair damaged property and infrastructure. Extreme weather events in the United States alone have cost an estimated 240 billion dollars per year, for the past ten years. The damages caused by Hurricanes Harvey, Irma and Maria are estimated to cost over 300 billion dollars. For perspective, 300 billion dollars is enough to cover the full tuition of all students currently enrolled in college and university across the United States (Leahy, 2017). The first hike in prices caused by climate change could come in the form of insurance premiums. Insurance companies recognize that climate change can cause massive amounts of damage, and that they would have to cover the costs for people who have insurance. To balance this out, these companies increase the premiums for people who want to insure their property (Wade et al., 2015). Some people may not be able to or willing to pay increased costs thus reducing the amount of people with insurance. This would make these people obligated to cover the full costs of damages caused by unforeseen events, e.g. hurricane, that would otherwise be covered by an insurance company. Climate change will have a severe impact on multiple industries. For example outdoor labour workers will face extremely warm weather, thus reducing overall productivity levels. The agricultural industry will also see a decrease in overall productivity as crops are extremely sensitive to the climate around them. As a result, warmer temperatures will likely result in a decrease in the area suitable for farming. This will likely cause an increase in food prices, potentially depriving people of important nutrients (Wade et al., 2015). Lower productivity levels will likely mean an overall decrease in GDP resulting in even more inflation and a potential increase in unemployment rates (Wade et al., 2015). As climate change worsens, governments around the world will be forced to either invest in more environmentally friendly strategies to slow climate change or face severe economic consequences. The former would represent an increase in funding for science and technology, potentially leading to scientific breakthroughs on the slowing of climate change. Countries investing in the slowing of climate change will likely encourage citizens to do their part by making more eco-friendly decisions or donating towards climate change research. Investing in climate change solutions could also create new jobs. In the U.S, doubling the amount of renewable energy sources could create up to 500 000 new jobs all while cutting carbon emissions (Leahy, 2017). On the other hand, countries that choose to ignore climate change will face costly consequences in the future. Natural disasters will become even more expensive, forcing governments to use even more money towards repairing damages. This could result in an increase in taxes or cuts to government funded programs. Some governments may decide that environmental agencies are unimportant and get rid of them entirely. That would be a huge blow to conservation efforts and may lead to the extinction of several species. There is also a possibility of cuts being made to health or welfare programs. As a result, people who rely on these programs may become strained and unable to afford necessities. In conclusion, money is an important resource in today’s world, a resource that must be used wisely. It is something used in everything from everyday payments to major corporate transactions. Therefore, the economic consequences of climate change will affect almost everyone. As the Earth warms at an ever increasing rate, the costs associated with climate change will rise with it. Thus, ignoring the process of climate change is simply economically unsustainable.