Circular Retribution: The Effects of Climate Change on U .S. and Global Economy

Abstract

C ircular R etribution T he E ffects of C limate C hange on U.S. and G lobal E conomy Hannes Prescher Until just recently, the pretext to all problems was tifying climate change based solely on the increase in “global warming.” (“Why is it raining?” “It’s because these gases is difficult. Much controversy surrounds of global warming.”) Then the economy plummeted: the various estimates that have been made with a massive national debt, a huge trade deficit, weak respect to the specific increase in CO 2 levels over time. job growth, and suddenly the focal point of all prob- However, recent studies conducted by the Intergov- lems is “the economy.” One (idiom) is exchanged for ernmental Panel on Climate Change (IPPC) decrease another yet the two are closely linked. Consider the the uncertainty of predicting the result of future emis- effect that global warming has on the economy. We are sion scenarios. The IPPC asserts that the doubling of accustomed to thinking of the environment as an infi- CO 2 emissions will increase the global mean surface nite well of resources that exists for the benefit of our temperature by 3°C yearly. 1 The IPCC determined that economic growth and so we take from it at will. Yet mean surface temperatures have increased by 0.74°C the climatic changes that ensue create natural disas- ± 0.18°C over the last one hundred years and that the ters and debilitate the economy: the damages incurred last decade experienced the warmest temperatures on reduce the initial growth created from environmental record. The planet is getting warmer and with increas- resources. The two are essentially linked in a mutu- ing evidence, humans are substantially to blame for it. 2 ally induced cycle that fluctuates between economic growth and decline. It is not surprising that both A catholic and detrimental shift in the climate is issues, the economy and the effects of global warming, the product of increasing global temperatures. This have risen to the fore of global po- litical concern and The agricultural industry, more so than any other action. The increase major industry, is severely impacted by climate change. in natural disasters, namely hurricanes as devastating as Katrina and the decimation of the agricultural indus- shift is manifested in the increased intensity of tropi- try, clearly demonstrates the powerful effects that cal cyclone activity, which leads to devastating hur- climate change has on the global economy. However, ricanes, and increased occurrence and duration of we can change this development by switching to solar extreme draughts, which greatly reduces agricultural and hydrogen systems as primary sources of energy. output and global food supply. We can effectively reduce the variable of economic damage induced by climate change and thereby build The agricultural industry, more so than any other a foundation not only for a healthier planet, but also major industry, is severely impacted by climate change. for a better and more stable economy. The yearly output and food supply is a direct product of fluctuations in temperature and precipitation. The global greenhouse effect is the primary con- Climate change is a permanent trend, one that can be tributor to the increase in the Earth’s mean surface seen only by analyzing the change in soil temperature temperature, and thus the main contributor to climate and its effect on crop output over many years. Such a change. Greenhouse gases such as carbon dioxide, study reveals that temperatures, especially for inland methane and chlorofluorocarbons collect in the atmo- areas, will increase dramatically. Such an increase will sphere and act much like an insulating blanket, trap- place a higher demand for water to irrigate the land, a ping heat and preventing the radiation of light back need that will prove costly as higher temperature will into space. The burning of fossil fuels, such as coal and slowly deplete the soil water. The scarcity of water will oil, and deforestation all contribute to the increase in be profound and the need extreme. these green house gases. There is no doubt that quan- B S J 4 • B erkeley S cientific J ournal • E conomics • S pring 2010 • V olume 13 • I ssue 2