Global warming or climate change can be identified as one of the most pressing issues of the contemporary times. With the passage of time, an increasing number of individuals are realizing the fact that global warming is not an issue to be ignored, particularly due to its economic effects. According to a variety of resources, which also include integrated assessment models, economics of global warming tend to combine several biophysical and socio-economic climate change assessments.
Advantages of Temperature Fluctuation
Temporary rise in temperature – According to some researchers, the global temperatures are always known to fluctuate. This makes the temperature to rise and fall temporarily and temperature fluctuation has its own advantages like in the following two cases:
- Improvement in agricultural output – It is more than often believed by many researchers that higher temperatures bring about vast improvement in terms of agricultural output. However, this statement often encounters a conflict when the issue of desertification is raised forth.
- Reducing electricity bills for chilly countries – It helps to generate lower electricity for countries that experience extremely cold temperature.
Problems or Disadvantages are More
Reducing the Effect
There are a number of factors, on which depends the global warming reduction or mitigation costs. Let’s have a glance through some of the most prominent ones:
- Action must be taken to lower the levels of atmospheric carbon-dioxide.
- Discount rate is also another crucial factor which plays a vital role in estimating the costs of mitigating global warming
- The relationship between regulatory incentives and technological development is the last and the most important factor. If the later can stimulate substantial technological development, this will reduce the cost of global warming
The economics of global warming or climate change are disseminated quite unequally. The sooner the regressive effects will be compensated within the environmental or other tax structure, the sooner the world will be benefit out of it.