Impact – Economy
Intensified storms caused by warmer waters drain countries’ financial resources
Stern 8, Nicholas (British economist and academic. He was the Chief Economist and Senior Vice-President of the World Bank from 2000 to 2003, and was recently a civil servant and government economic advisor in the United Kingdom. “Stern Review on the Economics of Climate Change.” http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/stern_review_report.cfm)
Storms are currently the costliest weather catastrophes in the developed world and they are likely to become more powerful in the future as the oceans warm and provide more energy to fuel storms. Many of the world’s largest cities are at risk from severe windstorms - Miami alone has $900 billion worth of total capital stock at risk. Two recent studies have found that just a 5 - 10% rise in the intensity of major storms with a 3°C increase in global temperatures could approximately double the damage costs, resulting in total losses of 0.13% of GDP in the USA each year on average or insured losses of $100 – 150 billion in an extreme year (2004 prices).29 If temperatures increase by 4 or 5°C, the losses are likely to be substantially greater, because any further increase in storm intensity has an even larger impact on damage costs (convexity highlighted in Chapter 3). This effect will be magnified for the costs of extreme storms, which are expected to increase disproportionately more than the costs of an average storm. For example, Swiss Re recently estimated that in Europe the costs of a 100-year storm event could double by the 2080s with climate change ($50/€40 billion in the future compared with $25/€20 billion today), while average storm losses were estimated to increase by only 16 – 68% over the same period.30
Damage from climate change has huge financial costs
Brown 8, Lester (World-renowned environmental analyst and head of the non-profit research organization the Earth Policy Institute based in Washington DC. p.64: “Plan B 3.0: Mobilizing to Save Civilization” http://www.earth-policy.org/Books/PB3/pb3ch3.pdf)
As the climate changes, more extreme weather events are expected. Andrew Dlugolecki, a consultant on climate change and its effects on financial institutions, notes that damage from atmospherically related events has increased by roughly 10 percent a year. “If such an increase were to continue indefinitely,” he notes, “by 2065 storm damage would exceed the gross world product. The world obviously would face bankruptcy long before then.” Few double-digit annual growth trends continue for several decades, but Dlugolecki’s basic point is that climate change can be destructive, disruptive, and very costly.69 If we allow the climate to spin out of our control, we risk huge financial costs. In a late 2006 report, former World Bank chief economist Nicholas Stern projected that the long-term costs of climate change could exceed 20 percent of gross world product (GWP). By comparison, the near-term costs of cutting greenhouse gas emissions to stabilize climate, which Stern estimates at 1 percent of GWP, would be a bargain
Impact – Prolif
Climate change guarantees war and nuclear proliferation as nations hunt for resources
Peter Schwartz, president of the Global Business Network an international think tank and consulting firm, and Doug Randall, senior practitioner at GBN with over ten years of scenario planning. October 3 “An Abrupt Climate Change Scenario and Its Implications for United States National Security”
As famine, disease, and weather-related disasters strike due to the abrupt climate change, many countries’ needs will exceed their carrying capacity. This will create a sense of desperation, which is likely to lead to offensive aggression in order to reclaim balance. Imagine eastern European countries, struggling to feed their populations with a falling supply of food, water, and energy, eyeing Russia, whose population is already in decline, for access to its grain, minerals, and energy supply. Or, picture Japan, suffering from flooding along its coastal cities and contamination of its fresh water supply, eying Russia’s Sakhalin Island oil and gas reserves as an energy source to power desalination plants and energy-intensive agricultural processes. Envision Pakistan, India, and China – all armed with nuclear weapons – skirmishing at their borders over refugees, access to shared rivers, and arable land. Spanish and Portuguese fishermen might fight over fishing rights – leading to conflicts at sea. And, countries including the United States would be likely to better secure their borders. With over 200 river basins touching multiple nations, we can expect conflict over access to water for drinking, irrigation, and transportation. The Danube touches twelve nations, the Nile runs though nine, and the Amazon runs through seven. In this scenario, we can expect alliances of convenience. The United States and Canada may become one, simplifying border controls. Or, Canada might keep its hydropower—causing energy problems in the US. North and South Korea may align to create one technically savvy and nuclear-armed entity. Europe may act as a unified block – curbing immigration problems between European nations – and allowing for protection against aggressors. Russia, with its abundant minerals, oil, and natural gas may join Europe. In this world of warring states, nuclear arms proliferation is inevitable. As cooling drives up demand, existing hydrocarbon supplies are stretched thin. With a scarcity of energy supply – and a growing need for access -- nuclear energy will become a critical source of power, and this will accelerate nuclear proliferation as countries develop enrichment and reprocessing capabilities to ensure their national security. China, India, Pakistan, Japan, South Korea, Great Britain, France, and Germany will all have nuclear weapons capability, as will Israel, Iran, Egypt, and North Korea.
Share with your friends: |