Economic impact of climate change

The economics of global warming concerns the economic aspects of global warming; this can inform policies that governments might consider in response. A number of factors make this a difficult problem from both economic and political perspectives: it is a long-term, intergenerational problem; benefits and costs are distributed unequally both within and across countries; and scientific and public opinions may diverge.

One of the most important greenhouse gases is carbon dioxide (CO₂). Around 20% of carbon dioxide which is emitted due to human activities can remain in the atmosphere for many thousands of years. The long time scales and uncertainty associated with global warming have led analysts to develop "scenarios" of future environmental, social and economic changes. These scenarios can help governments understand the potential consequences of their decisions.

The impacts of climate change include the loss of biodiversity, sea level rise, increased frequency and severity of some extreme weather events, and acidification of the oceans. Economists have attempted to quantify these impacts in monetary terms, but these assessments can be controversial.

...
Wikipedia