ECONOMIC EFFECTS OF CLIMATE CHANGES

Abstract

The world economy is facing great challenges. Huge destruction and damage caused by numerous conflicts, intensive technological development that has negative consequences in addition to advantages, losses and material damage that occur as a result of climate change absorb a large amount of resources. The economy also becomes sensitive to the effects of the aforementioned problems. The subject of analysis in the paper is the economic aspect of climate change, the level of losses caused by drought, floods, air and water quality, and the increase in energy consumption. The consequences of climate change, on the one hand, affect the increase in costs for the protection of human health, labor and production costs, while on the other hand, they cause lower yields, which all affect the drop in the GDP level. An increase in temperature by just 1°C causes a drop in GDP, which is measured in billions of dollars. According to research that analyzes emissions of harmful gases, CO2 emissions are expected to increase significantly, and in some countries even double. The increase in the number of people on the planet and the decrease in the amount of resources indicate the problem of meeting the growing needs. Will there be enough food and drinking water, how much does the way we treat nature cost, are apocalyptic forecasts possible, how to mitigate the consequences of global warming are questions we often ask ourselves.The need to influence the reduction of pollution, nature conservation and reduction of losses is recognized by domestic and foreign organizations that have adopted numerous conventions and protocols in an effort to mitigate and slow down climate change. A global problem requires a global response.