Economic Impacts of Climate Change to the Agricultural Sector
The economy and the environment are interconnected in many ways. From deforestation and factory farming to industrial procedures and oil burning, modern-day processes that accelerate economic growth simultaneously release greenhouse gases and contribute to global warming. Environmental problems are not only caused by a myriad of economic factors, but they have critical economic consequences as well. In 2018, scientists at Stanford University assessed the costs of global warming to the global economy. They found that global GDP would decrease by 15% if temperatures rose by 2.5%, by 25% if temperatures rose 3oC and by more than 30% if temperatures will rise by 40C or more. Specifically, the agricultural sector will be severely hit economically by the environmental consequences of our human activity, which range from rising sea levels and the collapse of ecosystems to changing weather patterns and more frequent natural disasters.
With global warming comes the rise of each location’s average temperatures, which lead to changes in growth zones and growing seasons. Some regions, especially the colder ones like Siberia, Northern Europe, and Canada, may benefit economically from longer growing seasons and longer ice-free seasons for shipping. However, more frequent natural disasters that come with climate change can diminish economic growth and hurt crops, capital stock, labor supply, etc. Overall, it is difficult to respond and adjust adequately as the habitats of each species change. As a result of changing climates, plants and crops will either move with the change, adapt to the different surroundings, or go extinct. This affects agricultural output and increases uncertainty on production totals. Locations that used to offer the right growing conditions may become too arid, too hot, or too wet. Hence, decreased supplies will push up domestic and international food prices and put a strain on markets. By affecting agricultural production, climate change has the potential to change the stability of food supplies, thus, creating new food security challenges, especially with the exponential growth of the world population.
To delve further into understanding the significance of the effects of climate change, potential chain effects should be examined. For example, when the United States experiences long periods of abnormally hot temperatures, corn and soybean harvests decline significantly because they cannot grow adequately when temperatures rise beyond 84oF. As these supplies fall, their prices rise. Worker productivity in outdoor jobs may also decrease, further pushing the cost of food upward. Moreover, cattle and other livestock also have to face decreased food supply, which will drive up meat, milk, and poultry prices.
To mitigate economic damages on agricultural output and prices, adaptive actions need to be taken in areas including research, production, consumption, and education. In response to the gradual rise in temperatures, farmers can change their planting patterns or crop types with the help of data analysts to maximize yields and optimize the growing environments. Researchers can strive to find new seed varieties that are more tolerant to the changing conditions. Moreover, on the side of world trade, shifts in the quantities of agricultural exports and imports can accommodate and balance out the changes in altering outputs in different countries. Most importantly, it is essential to target the root of the problem—climate change—through education and continue making technological advances to keep pace with environmental changes.
References:
https://www.thebalance.com/effects-of-global-warming-on-the-economy-3305692
https://are.berkeley.edu/~fisher007/SFH_2.pdf
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