THE IMPACT OF CLIMATE CHANGE ON SELECTED AREAS OF THE WORLD ECONOMY

Abstract

Background and Objective: Climate change and its impact on the environmental system poses significant risks on the global economy. Yet, most economic theories do not or insufficiently take these into account. Ecological economics is a new scientific field that looks into the risks of climate change impacts on the global economy as extreme weather events are believed to hold disruptive potential towards future economic developments.

Study Design/ Materials and Methods: This review article is based on a primary literature review of key authors within the respective field. As main criteria the articles publication year has been considered.

Results: Climate change risks negatively impact the world’s economic system. Key sources of anthropogenic climate change are industrial CO2 emissions. The logistic industry is one of the major contributors. Impact of climate change are evident through disruptive changes in various environmental systems materializing in e.g. biodiversity loss, change in land, shifts of natural resources and natural catastrophes posing significant threats of economic losses and rising global inequalities.

Conclusion and practical implications: This study adds to our understanding of the direct and intense connection between climate change effects and local and global economic developments.