The document discusses how climate change affects economic activity. It notes that climate change threatens economic stability by impacting key sectors like agriculture, industry, and infrastructure through increased extreme weather, rising sea levels, and other effects. The impacts include damage to property and infrastructure, reduced productivity, health effects, and risks to financial systems. Specifically, the document outlines how climate change poses challenges for agriculture through changes in temperatures, rainfall, pests and diseases. Industry is impacted through higher energy and transportation costs. If no action is taken, the document warns that global GDP could be reduced by 30% by 2100 due to climate change effects. It calls for international, governmental, and public cooperation to address climate change through education and green economics.

1. HOW DOES CLIMATE CHANGE AFFECT
ECONOMIC ACTIVITY ?
Dr.C.Muthuraja, M.A, M.Phil, PhD
Associate Professor and Head
Post Graduate and Research Department of Economics
The American College, Madurai - 625 002, TAMIL NADU
(cmuthuraja@gmail.com) - (M-09486373765)
(Presented at RL Institute of Management Studies, A Unit of Subbalakshmi Lakshmipathy College
of Science, Madurai - 625022, Tamil Nadu on 21.11.2022)
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2. CONTENTS
 INTRODUCTION
 CLIMATE CHANGE
 CLIMATE CHANGE & ECONOMIC ACTIVITY
 IMPACT ON :
 AGRICULTURE
 INDUSTRY
 ENVIRONMENT
 PEOPLE
 MITIGATION
 ROLE :GOVERNMENT-PRIVATE-NGO’S-INDIVIDUAL
 SUMMARY
 APPEAL
 QUESTIONS Please…
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3. SINCE 1881

4. CLIMATE CHANGE
 Climate change occurs when changes in Earth's
climate system result in new weather patterns that
last for at least a few decades, and maybe for
millions of years
 The climate system is comprised of five interacting
parts, the atmosphere, hydrosphere, cryosphere,
biosphere, and lithosphere
 Small changes in average temperature of Earth lead
to large and potentially dangerous shifts in climate
and weather
 Rising global temperatures, Changes in weather
and climate, floods, droughts, intense rain, frequent
and severe heat waves
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5. Climate Change and its Effects
 Climate change is now considered one of the greatest
threats to economic stability
 Climate change is one of the biggest threats to
economic stability
 Heat waves make us less able to work and reduce
productivity
 Warmer temperatures, sea level rise and extreme
weather will damage property and critical
infrastructure
 Negative impact on human health and productivity,
and affect sectors such as agriculture, forestry,
fisheries and tourism
 Property loss and damage, infrastructure and service
costs and risks to financial stability
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6. SINCE 1881

7. Climate Change & Agriculture
 Causing a rise in sea level, leading to the loss of
coastal land, a change in precipitation patterns,
increased risks of droughts and floods, and threats to
biodiversity
 Rise to blights and pests and causing population
movement and change in biodiversity.
 Changes in average temperatures, rainfall, and
climate extremes (e.g. heat waves)
 Changes in pests and diseases
 Changes in atmospheric carbon dioxide and ground-
level ozone concentrations
 Changes in the nutritional quality of some foods
 Brings about biological changes in areas such as
fertilization and breeding and affects the growing
pattern of pastures
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8. Climate Change and Industry
 Higher Prices for Goods and Services
 Even companies that aren't in the energy industry
can be indirectly affected by energy regulation and
the costs they create
 Broad changes in prices for utilities and
transportation must be passed on by suppliers
 The companies in the middle must pass them on to
their customers
 Changes in the interest rate, wage rates, and the rate
of inflation
 Affects fuel supply, energy production as well as the
physical resilience of current and future energy
infrastructure
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9. Climate Change and Economy
 In the Oxford Economics high emission scenario, a
temperature rise of 2 degrees by the year 2050
would reduce global GDP by 2.5% – 7.5%
 By the year 2100 in this case, the temperature would rise
by 4 degrees, which could reduce the global GDP by
30% in the worst case
 It influences economic growth through damage to
property and infrastructure, lost yield or output,
security risk and mass migration
 It could wipe off up to 18% of GDP off the worldwide
economy by 2050 if global temperatures rise by 3.2°C,
the Swiss Re Institute warns
 Direct damages of such disasters are estimated to add up
to around US$ 1.3 trillion (or around 0.2% of world
GDP on average, per year
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10. SINCE 1881

11. ECONOMICS OF CLIMATE CHANGE
• The uncertainty inherent in economic analyses of
environmental regulations is magnified by the long-term
and global scale of the problem
• There are uncertainties regarding the pace and form of
future technological innovation, economic growth, and
thresholds for climate impacts
• Discusses the effect of global warming on the world
economy
• The Stern Review on the Economics of Climate
Change for the Government of the United
Kingdom (2006 by economist Nicholas Stern, Chair of
the Grantham Research Institute on Climate Change and
the Environment at the London School of
Economics (LSE) and also chair of the Centre for
Climate Change Economics and Policy (CCCEP) at
Leeds University and LSE
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12. The Economists Perspective
 “… it will do us little good to solve our common
global economic problems if we do not do
something about the most pressing common
environmental problem: global warming.”
Joseph E. Stiglitz, 2001 Nobel Memorial Prize in
Economics
 “we are much better off to act to reduce CO2
emissions substantially than to suffer and risk
the consequences of failing to meet this
challenge.”
Kenneth J. Arrow, 1972 Nobel Memorial Prize in
Economics
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13. SINCE 1881

14. CC India - Benefits and Costs
• Climate change could cost India 2.8 per cent of GDP,
and depress living standards of nearly half of its
population by 2050, as average annual temperatures are
expected to rise by 1-2 per cent over three decades
• If no measures are taken, average temperatures in India
are predicted to increase by 1.5-3 degrees- 'South Asia's
Hotspots: The Impact of Temperature and Precipitation
Changes on Living Standards‘
• Even if preventive measures are taken along the lines of
those recommended by the Paris climate change
agreement of 2015, India's average annual temperatures
are expected to rise by 1-2 degrees Celsius by 2050
• About 600 million people in India today live in
locations that could either become moderate or severe
hotspots of climate change by 2050 under a business-
as-usual scenario
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15. CLIMATE CHANGE AND GENDER
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16. CLIMATE CHANGE AND POVERTY
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17. CLIMATE CHANGE AND CHILDREN
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18. Climate Change
Cautions and Concerns
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20. SINCE 1881

21. CC SDGs - AGENDA
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22. STUDENTS AND CLIMATE CHANGE
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23. TOWARDS GREEN ECONOMICS/WORLD
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ROLE OF
 INTERNATIONAL INSTITUTIONS
 GOVENMENTS
 PRIVATE CORPORATES
 NON GOVERNMENT ORGANISATIONS
 PUBLIC
 MASS/SOCIAL MEDIA FAMILY
 INDIVIDUAL
FAMILY PARTICIPATION
PUBLIC PARTICIPATION
SOCIAL/CIVIC RESPONSIBILITIES
LEARN TO SHARE
LEARN TO UNLEARN +++

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27. APPEAL
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QUESTIONS
Please…
TOWARDS CLIMATE CHANGE EDUCATION
“GREEN ECONOMICS”
PLEASE
EACH ONE TEACH ONE
IF NOT
EACH ONE CATCH ONE AND TEACH ONE