Economics as an Aspect of Climate Regulation (Essay Sample)

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Economics as an Aspect of Climate Regulation
Significant changes in the quantitative and qualitative nature of life have an impact on the current stage of human development. The intensive development of science and technology contributes to the activation of all economic processes, supporting the growth of anthropogenic impacts on the environment. One of the manifestations of this process is the negative trends of climate change over the past decades. People of all social groups in the United States are concerned about this issue. This research paper describes the analysis of the trends of climate change , its causes and consequences for the economy.
Climate change is one of the most serious environmental problems, which contributes to the emergence of negative implications for the environment, economy and society. The level of the industrialization is growing in the world consistently. It is the primary cause of the global climate change. The anthropogenic factors contribute to climate change, causing a change in the concentration of greenhouse gases, aerosols and clouds in the atmosphere. According to Gore, author of “Our Choice: A Plan to Solve the Climate Crisis”, published in 2009, one of the main problems is the burning of fossil fuels, throwing out the carbon dioxide into the atmosphere. The greenhouse gases have an impact on the climate through the change of the amount of infrared radiation. Excess of these gases in the atmosphere can lead to warming or cooling of the climate system. The burning of fossil fuels for the power industrialization leads to the accumulation of the greenhouse gases. Human impact on the environment exceeds an effect of natural processes since the beginning of the industrial age. The quantity of the emissions of carbon dioxide in the atmosphere did not exceed the standards before the Industrial Revolution. The greenhouse gases are an integral component of the atmosphere because the balance of carbonic gas is necessary to maintain the temperature suitable for life on our planet.
Significant emissions lead to global warming, which is the gradual increase of the temperature of the Earth's surface due to the increase of greenhouse gases in the atmosphere (Gore 83).
The international community recognizes climate change as a global problem because the harmful emissions have a transboundary character. Two primary alternative approaches are crucial for assessing the adverse impact (Kooten 9). The first aspect takes into account the actual evaluation of the damage, and the second item shows the preliminary costs to prevent possible damages. The first type of assessment determines the actual damages or costs to eliminate the adverse effects on the environment. The second aspect determines the size of potential losses as a result of negative impacts. Projects on the liquidation of the foreseen losses should be aimed at introducing different types of protective measures to prevent damages.
The Primary Aspects of the Impact of Climate on the Economy
According to Stern, the author of “The economics of climate change,” published on January 4, 2007, the USA is one of the most powerful countries in the world in regard to the issues of climate change. The policy of the country has an impact on the development of the global warming pace significantly. The US policy is the subject of a political confrontation between the Democrats and the Republicans on the of climate change issues. The increase of the wind speed leads to doubling of annual losses (5.10% or 0.15% of GDP of the world's largest economy). In the coming decade, the growth of losses due to storms, hurricanes, floods, droughts and heat will lead to increase of GDP by 0.1%. The annual losses will amount to 0.5-1% of the world GDP by the mid-century (Stern 63). Nicholas Stern described the economic model of the development and interaction of all sectors of the economy regarding the impact of climate change on investments and capital costs. A significant achievement of Stern is the development of a new structure of the economic modelling, taking into account all possible types of influence and formalization of an integrated assessment model. The calculations were performed regarding two aspects. On the one hand, the maximum economy adaptation to new climatic conditions will lead to low damage as a result of climate change. On the other hand, if the economy does not fully adapt to climate change, it will lead to significant losses in the future. The scientist said that the United States can benefit from...