Climate Change Facts and Effect on the Economy

What Has Climate Change Cost Us? What's Being Done?

Hurricane Sandy

 Photo by Robert Nickelsberg/Getty Images

is the Earth’s response to higher levels of greenhouse gases in the atmosphere. They create a blanket that traps the heat from the sun and sends it back to the planet’s surface.

As of February 2019, NASA-recorded carbon dioxide levels were  The last time levels were this high was during the Pliocene era. Back then, the Arctic was 7.7 degrees Celsius, or 14 degrees Fahrenheit, warmer in the summer than it is now. As a result, it was only frozen during the winter. With less ice, sea levels were 30 meters, or 98 feet, higher than today. That’s enough to flood New York, London, Miami, San Francisco, and Shanghai. 

Why isn’t the Earth as hot as it was then? Greenhouse gases have risen so fast that temperatures haven’t had a chance to catch up. In 2002, they were . In 1880, they were just 280 ppm.

In addition, the oceans absorbed most of the added CO2 from the atmosphere. In response, they’ve become 30% more acidic since the beginning of the Industrial Revolution. This is causing a mass extinction of sea life. For example, around have died in the last 30 years.

In addition to absorbing C02, the oceans have also absorbed 90% of the heat. When water heats, it expands. That’s caused rising sea levels and flooding. 

The top 2,300 feet of the ocean have warmed 0.3 degrees since 1969. The was 100,000 years ago. Sea levels were 20 to 30 feet higher. The ocean has warmed so fast that there hasn’t been enough time for higher temperatures to melt the arctic ice caps. As it does, sea levels will catch up to where they were last time the ocean was this warm. That’s enough to flood New York, London, and Miami.

The atmosphere’s temperature has risen 1.2 C since 1880. That’s. It will continue to increase even if no more greenhouse gases were emitted starting tomorrow. The temperature is reacting to the greenhouse gases that have already been emitted. To stop the effects of climate change, these gases must be absorbed from the atmosphere and put back into the ground.

It's true that climate change is nothing new in the Earth's history. But occurred over millions of years, not decades.


Humans have caused the current crisis by burning fossil fuels that emit greenhouse gases. Previous climate change was caused by slight changes in the earth’s orbit.

On November 3, 2017, the Trump administration  that blamed climate change on human activity. According to the , the U.S. sources in 2015 were:

Source Fuel Percent
Electricity Generation Coal, Natural Gas 29%
Transportation Oil, Gasoline 27%
Industry Oil, Chemicals 21%
Commercial and Residential Heating Oil 12%
Agriculture Livestock 9%
Forestry Absorbs CO2 offset 11 %

On a per-person basis, the United States . In 2014, it emitted 16.2 metric tons of CO2 per person. Canada was next, at 15.1 metric tons. China was sixth, at only 7.5 metric tons emitted per person.

Since 1850, the United States has contributed 8 billion metric tons of carbon dioxide. That's a third of total greenhouse gases. The good news is that its emissions are leveling off. The bad news is that about 20% of that will remain in the atmosphere for .

The United States is one of the world’s richest countries. As a result, a  found that the planet's wealthiest 1 billion people emit 60% of greenhouse gases. The poorest 3 billion produce only 5%. That’s why you’ll hear people say income inequality causes climate change.

Economic Impact

Climate change should really be called climate destabilization. The temperatures in the Arctic and Antarctic are rising faster than those in temperate and tropical areas. As a result, portions of the have split off and blocked the jet stream. That’s a river of wind high in the atmosphere that races from west to east at speeds up to 275 miles an hour. It’s made the jet stream wobble.

That creates blizzards, heat waves, and other forms of extreme weather. This includes tornados, wildfires, hurricanes, blizzards, floods and landslides, heat waves, and droughts. It also includes violent storms, whether they be dust, hail, rain, snow, or ice. Since 1980, . Munich Re, the world's largest reinsurance firm, for $24 billion of losses in the California wildfires. It warned that insurance firms will have to raise premiums to cover rising costs from extreme weather.

That could make insurance too expensive for most people.

A  showed that 55% of Americans believe that climate change made hurricanes worse. As a result,  being afraid of climate change. 

In May 2018, how much global warming would cost the global economy. If the world's nations adhered to the Paris Climate Agreement, and temperatures only rose 2.5%, then the global gross domestic product would fall 15%. If temperatures rose to 3 C, global GDP would fall 25%. If nothing is done, temperatures will rise by 4 C by 2100. Global GDP would decline by more than 30% from 2010 levels. That's worse than the Great Depression, where global trade fell 25%.

The only difference is that it would be permanent.

The  estimated that climate change threatens 1.2 billion jobs.

The industries most at risk are agriculture, fisheries, and forestry. a decline in its lobster catches. Natural disasters have already cost 23 million working life years since 2000. On the other hand, efforts to stop climate change would by 2030.

 mass migration around the world. Immigrants are leaving flooded coastlines, drought-stricken farmlands, and areas of extreme natural disasters. Since 2008, according to the United Nations High Commissioner for Refugees. By 2050, climate change will force 700 million people to emigrate. 

 mass migration around the world.

Immigrants are leaving flooded coastlines, drought-stricken farmlands, and areas of extreme natural disasters. Since 2008, according to the United Nations High Commissioner for Refugees. By 2050, climate change will force 700 million people to emigrate. 

Immigration at the U.S. border will only increase as global warming worsens conditions in Latin America. that climate change could send 1.4 million people north by 2050. Drought, shifting rain patterns, and extreme weather destroys crops and leads to food insecurity. The that almost half of Central American immigrants left because there wasn't enough food.

In 2017, the U.S. Department of Defense reported that to U.S. national security.

Extreme weather and rising sea levels caused by global warming endanger 128 military bases. A revealed that U.S. Naval Academy in Annapolis, Md. has experienced storm surge flooding and hurricane damage. The Cape Lisburne Long Range Radar Station in Alaska has lost a seawall from extreme weather. In response, Congress asked DoD to identify the 10 most vulnerable sites and recommend solution strategies. 

As America experiences  days, food prices are rising. Corn and soybean yields in the United States  when temperatures rise above 84 degrees Fahrenheit. Those crops feed cattle and other meat sources. It's created spikes in beef, milk, and poultry prices. Worker productivity declines sharply, particularly for outdoor jobs. That further increases the cost of food.

A 2019 study found that down 4% since 1920. That's 1.4 million metric tons. In the North Atlantic and Sea of Japan, that decline is 35%. That affects Atlantic cod, haddock, and herring. Many species are threatened with extinction. That affects the 3 billion people who rely on fish for their primary source of protein. It also affects the $100 billion fishing industry and the . It especially affects the United States, which imports 90% of its seafood.


The United Nations recommended that the world limit its average temperature to 2 C above pre-industrial levels. It's . Here's a timeline of what's been done:

1992. The United Nations Framework Convention on Climate Change was formed.

December 11, 1997. The United Nations adopted the . The European Community and 37 industrialized countries promised to reduce greenhouse gas emissions between 2008 and 2012. The first commitment was to 5% below 1990 levels. The second commitment period was from 2013 to 2020. They agreed to reduce emissions by 18% below 1990 levels. The United States never ratified it. 

2008. The International Energy Administration called for in the next 50 years to prevent global warming from slowing economic growth. To put this into perspective, the economic output of the entire world is only $65 billion a year. 

The measures included building 32 nuclear power plants each year and reducing greenhouse gases by 50% by 2050. This would cost the world $100 billion to $200 billion a year for the next 10 years after 2008, and rise to $1 trillion to $2 trillion after that. 

December 7, 2009. The Environmental Protection Agency found that . Based on this study, the EPA finalized emission standards for cars in 2010 and trucks in 2011.

December 18, 2009. The UN Climate Summit produced the . Countries pledged to limit global temperature increases to 2 C over the pre-industrial level. The developed countries agreed to pay $100 billion a year by 2020 to assist poor countries affected the most by climate change. That includes relocating communities hit by floods and droughts and protecting water supplies. The countries agree to provide $30 billion over the next three years.

Some countries refused to sign the agreement because the United States  of its emissions by 2020. That foot-dragging signaled to many that Obama was not any more committed than the Bush administration

In 2010, four climate goals by 2020.

  1. Reduce CO2 emissions by 40% below 2005 levels. (97% achieved in 2017.)
  2. Increase renewable energy consumption from 9.4% to 15%. (60% achieved.)
  3. Increase forest stock by 1.3 billion cubic meters. (Exceeded as of 2017.)
  4. Increase forest coverage by 40 million hectares relative to 2005. (60% achieved.)

August 3, 2015. President Obama released the . It established to reduce carbon emissions from power plants by 32% below 2005 levels. The goal is to do so by 2030. The Trump administration with one that focuses only on emissions from coal plants.

December 18, 2015. The  was signed by 195 countries. They pledged to cut greenhouse gas emissions by 26 to 28% below 2005 levels by 2025. They also committed $3 billion in aid for poorer countries by 2020. These are most likely to suffer damage from rising sea levels and other consequences of climate change.

The accord's goal is to keep global warming from worsening another 2 degrees Celsius above pre-industrial levels. Many experts consider that the tipping point. Beyond that, and the consequences of climate change become unstoppable.

The United States is responsible for 20% of the world's carbon emissions. It would be difficult for the other signatories to reach the accord's goal without U.S. participation. But they are trying. Sixty jurisdictions around the world have carbon taxes. China, Germany, Sweden, and Denmark are . Greenhouse gas emissions from livestock contribute 14.5% of the world's total.

Even if all countries follow the Accord, temperatures will continue to rise. The atmosphere is still reacting to the CO2 that's already been pumped into it. Greenhouse gases have been added so quickly that temperatures haven't caught up yet.

As a result, measures need to be stricter to reverse global warming. The Climate Impact Lab predicts major cities will see many days above 95-degree Fahrenheit. By 2100, Washington D.C. will experience 29 extremely hot days each year. That's quadruple the average of seven it experienced from 1986 to 2005.

November 4, 2016. The Paris Agreement went into force as 55 members ratified the agreement. They make up 55% of global emissions.

June 1, 2017. President Trump announced the United States . Trump said he wanted to negotiate a better deal. Leaders from Germany, France, and Italy said the accord is non-negotiable. China and India joined the other leaders in stating they remain committed to the accord. Some have argued that America's withdrawal from a leadership position creates a vacuum that China will readily fill. The United States cannot legally exit until November 1, 2020. This will make it an issue in the next presidential election.


Business leaders from Tesla, General Electric, and Goldman Sachs said this will give foreign competitors an edge in clean energy industries. U.S. companies need government support and subsidies in these industries to pay for research and bring costs down.

in electric vehicles. Almost half of the world's plug-in electric vehicles are sold in China. Its regulations and subsidies drive consumers away from gasoline-powered cars. China wants to reduce pollution. It also wants to reduce reliance on foreign oil. But more importantly, it wants to improve the country's automakers. China's car market is so large, it's forcing foreign carmakers to improve their electric vehicle production.

October 10, 2017. The Trump administration proposed to repeal the Clean Power Plan.

. The European Union agreed to cut carbon-dioxide emissions by new vehicles by 30% between 2021 and 2030.

December 12, 2017. French President Emmanuel Macron convened 50 world leaders to the . Trump was not invited because he withdrew from the accord. The  how to finance the global transition away from fossil fuels.

May 15, 2018. to stop climate change. Even though it is a major oil producer, it is feeling the effects of global warming. The permafrost is thawing, destabilizing roads, and buildings that sit on it. Protective sea ice is melting, allowing powerful waves to erode Alaskan shores. As a result, 31 coastal towns may need to relocate. 

The world's 1,000 biggest corporations contribute 12% of greenhouse-gas emissions. In 2017, to cut those emissions. But it's not enough to reach the U.N.'s target of 2 degrees Celsius. So far, 14% of the companies have goals that align with the target. Another 30% pledge do so in the next two years. Investment firms, such as HSBC Holdings and Goldman Sachs, have begun targeting more low-carbon businesses.

Republican Newt Gingrich, the former Speaker of the House, argued for the importance of supporting entrepreneurial environmental solutions in his 2007 book, "." Pressure on the market forces that got the atmosphere into trouble is the best solution to clean it up.

Seven Steps You Can Take Today to Stop Climate Change

Until there is stronger government leadership, we must create our own progress. Many everyday citizens and  are hard at work on innovative ways to address climate change.

First, plant trees and other vegetation to halt deforestation. You can also donate to charities that plant trees. For example,  hires local residents to plant trees in Madagascar and Africa for $0.10 a tree. It also gives the very poor people an income, rehabilitates their habitat, and saves species from mass extinction.

Second, become carbon neutral. The of CO2 a year. According to , 100 mangrove trees can absorb 2.18 metric tons of CO2 annually. The average American would need to plant 734 mangrove trees to offset one year’s worth of CO2. At $0.10 a tree, that would cost $73.

The United Nations program also allows you to offset your emissions by purchasing credits. These , such as wind or solar power plants in developing countries. 

Third, enjoy a plant-based diet . Cows create methane, a greenhouse gas. Monoculture crops to feed the cows causes deforestation. The  those forests would have absorbed 39.3 gigatons of carbon dioxide. it's one of the best global warming solutions because the production of these food items creates 50% of global greenhouse gas emissions.

Similarly, avoid products using palm oil. Most of its production . Tropical forests and carbon-rich swamps are cleared for its plantations.   as an ingredient.

Fourth, to disclose and act on their climate-related risks. Since 1988, 100 companies  for more than 70% of greenhouse gas emissions. The worst are ExxonMobil, Shell, BP, and Chevron. contribute 6.49% alone.

Fifth, reduce food waste. The  that 26.2 gigatons of CO2 emissions would be avoided if food waste was reduced by 50%.

Sixth, cut fossil-fuel use. Where available, use more , biking, and electric vehicles. Or keep your car but maintain it. Keep the tires inflated, change the air filter, and drive under 60 miles per hour. 

Seventh, hold the government accountable. Each year, $2 trillion is invested in building new energy infrastructure. The  that governments control 70% of that. 

Similarly, vote for candidates who promise a solution to global warming. The is pressuring candidates to adopt a Green New Deal. There are  who have vowed not to accept campaign contributions from the oil industry.


that by 2050 temperatures will have caught up with today’s level of CO2. That’s when there will be no Arctic ice in the summer. The dark ocean that replaces it will absorb even more heat. It will create a chain reaction that will further heat the earth’s temperature even if we stop emitting additional greenhouse gases.

since 1990. But 2015 levels dropped slightly from the prior year. Power plants began switching from coal to natural gas and a warmer winter reduced demand for heating oil.

There are no . Climate destabilization means that the world will be pummeled by extreme weather. hurt agriculture. Bats and birds that pollinate plants are down 17%. A  estimates that 75% of the world’s food crops rely on pollinators to some extent. If these species go extinct, so does almost 8% of the world’s food species. A third of the fishing areas are overharvested. Everyone will be affected in ways that are difficult to imagine now.

The Bottom Line

Climate change is a global reality that must be addressed now. The colossal quantities of carbon dioxide pumped into the atmosphere over the past century are warming temperatures at a seriously rapid rate. Because of this, flooding, extreme weather, wildfires, and other natural disasters are occurring more frequently and at a greater degree of intensity than ever.

Decisive, committed actions must be taken today to avert an added temperature rise exceeding 2 C or 35.6 F. This is the world’s tipping point before permanent catastrophes descend and change life as we all know it. Today, we only have 0.5 C leeway before this happens. It’s time to punch that red alert button to push everyone in the world to lower their carbon emissions now before it becomes too late.