Impact on economy

THE damage from climate change-induced natural disasters to property, businesses, and critical infrastructure is evident worldwide. However, understanding climate change impacts on the output of economies is vital to developing the resilience of social and economic systems. Certain industries such as agriculture, fisheries, housing and real estate, and tourism are under huge stress due to increasing temperatures, rising sea levels, and extreme and abrupt changes in average weather patterns. As for halting economic output, frequent disruptions in power, water supply, and transportation services cause the idling of labour and capital, resulting in weakened efficiency and productivity in industry, raising the cost of doing business, and increasing risk and uncertainty. For example, an increase in temperatures affects the performance of production units in terms of lower labour output, reduced work hours, and technical delays. Further, warming temperatures often cause water- and food-borne diseases, causing illness and subsequent costs, including lost labour hours.