New report sheds light on the cost of climate changeJuly 4, 2014
Actual costs of a changing climate may have been severely underestimated
The cost of climate change may be severely underestimated, according to the Grantham Research Institute on Climate Change and Environment. For years, the costs of climate change have been the subject of interest throughout the world. Many countries have been taking efforts to mitigate the financial impact of the phenomenon by embracing renewable energy and bolstering their defenses against natural disasters. The actual costs of this phenomenon are only now beginning to be understood, however.
Outdated economic models are being used to gauge the financial impact of a changing climate
According to a new report from the Grantham Research Institute on Climate Change and the Environment, current estimates regarding the costs of climate change are largely based on outdated economic models. These models do not adequately represent the current economic climate and account for the trends that have emerged to affect the global financial structure. Original estimates suggested that the cost of climate change would be close to $50 per ton of carbon dioxide produced next year. The report suggests that these costs could be closer to $200 per ton, however.
Climate change continues to be an uncomfortable subject
Climate change is an issue that is shrouded in controversy. There are debates concerning the existence of this phenomenon and whether or not anything should be done to address it as a problematic issue. One of the reasons that climate change is an uncomfortable subject is because it has been associated with several “doomsday” scenarios. While climate change itself is not likely to lead to a future where the human species no longer exists, it may change the world, from an environmental standpoint, in a very dramatic way.
Countries may be more willing to save the economy rather than the environment
Understanding the actual costs of climate change may be the best way to raise awareness about the issue. Over the past several years, support for renewable energy has grown largely because of its economic promise and not because of its environmentally friendly nature. When countries begin to calculate the cost of climate change, they are more likely to take action to mitigate its financial impact.