Impact of climate change on the economy from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
Climate change has become a significant concern for economies worldwide due to its potential impact on various sectors. The economy is closely linked to the environment, and any changes in the climate can have far-reaching consequences. One of the main ways climate change affects the economy is through extreme weather events such as hurricanes, droughts, and floods. These events can damage infrastructure, disrupt supply chains, and lead to crop failures, all of which can have a negative impact on economic growth. In addition to physical damage, climate change can also affect the economy through changes in productivity and labour supply. Rising temperatures can reduce agricultural yields, leading to food shortages and higher prices. Heatwaves can also reduce worker productivity, resulting in lower output and economic growth. Furthermore, climate change can lead to increased healthcare costs as the incidence of heat-related illnesses and diseases such as malaria and dengue fever rises. This can put additional strain on healthcare systems and reduce overall productivity. Another way in which climate change can impact the economy is through changes in consumer behaviour. As people become more aware of the environmental impact of their choices, they may shift towards more sustainable products and services, leading to changes in demand and potentially disrupting traditional industries.- The impact of climate change on the economy is complex and multifaceted. It is essential for policymakers and businesses to take proactive steps to mitigate these risks and adapt to the changing climate to ensure long-term economic sustainability.
