Contain Our Climate

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  • Published : June 3, 2013
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Although there are economists who may argue that global climate change has little impact on our economy today, there is strong evidence that ignorance on this topic will lead to a financial hole in the long run. In order to gain awareness on this stagnant approach, Frank Ackerman and Jonathan M. Harris analyze economic climate change in their articles. Some of these topics regarding economic climate change include the monetary impact that climate change will have on future generations, the impact on the economy after climate change damage and the history of policies that have been made in response to economic climate change. Once these points have been clearly assessed and explained, the next step is to ponder possible solutions to prevent these scenarios from happening. The economics of climate change is mainly focused on our future generations who will be affected by the decisions made in the present time. Climate change is not seen as so urgent as it is stressed when it is viewed in a small span of time but when this span is enlarged, the cost of remedying climate change greatly increases. As CO2 increases, the damage it will do to the world increases as well which will also lead to money needed to fix whatever damages might occur. In order to pay for an amount that will be incurred over time, economists use the discount rate so they can account for a future value. The reason this rate is used is because an amount today would not be worth the same amount in the future since it could gain interest. Understanding the discount rate helps grasp an idea on how much money will be needed today in order to pay for the future but if no investments are made for the future, then the damage done by climate change over time could considerably exceed what would have been the cheaper option. If left neglected, climate change poses a huge threat to the world and the economy. Although some economists might argue that the impact of climate change is not so great of a threat,...
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