Economic Impacts Of Global Warming by RG

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									Economic Impacts Of Global Warming

European Union

E.U. Economic Facts
GDP - composition by sector:

GDP: $13.9 billion Per Capita: $26,800 Currency: Euro - One Euro is equivalent to $1.24 U.S. currency. GDP- real growth rate: 2.4% Unemployment rate: 9.5%
70%

2%= Agriculture 28%= Industry 70%=Services
2% 28%

Economic Measures taken thus far

Environmentally Motivated Subsidies
-The EU produces around 21% of global greenhouse gas emissions, and has agreed to a cut, on average, their emissions by 8% from 1990 emission levels. In December, 2002, the EU created a system of emissions trading in an effort to meet these targets. Quotas were introduced in six key industries: energy, steel, cement, glass, brick making, and paper/cardboard. There are also fines for member nations that fail to meet their obligations, starting at €40/ton of carbon dioxide in 2005, and rising to €100/ton in 2008. Current EU projections suggest that by 2008 the EU will be at 4.7% below 1990 levels.

Costs of Adhering to the Kyoto Protocol
-Costs of cutting all six greenhouse gases covered by the Kyoto Protocol across the European Union economy is estimated near 3.7 billion euros during the first protocol commitment period of 2008 to 2012. This is equivalent to 0.06 percent of predicted Gross Domestic Product. -In 2003 it was said that the power industry will face costs of 1.2 billion Euros to meet the demands of the Kyoto protocol demand of cutting GHG emissions by 8%.

Costs to the European Consumers
The EU’s emissions trading scheme costs consumers between 85 million and 2.3 billion euro due to increases in the price of electricity.

Main Economic Concerns
Climate extremes Agriculture, forestry, and Marine impacts Health related impacts Tourism

Climate Extremes

Climate Extremes
Climate extremes will have a broad range of effects on multiple industries especially Agriculture. -Even though agricultural production is a small portion of the E.U.’s GDP it is still a vital resource that can not be ignored in the face of the growing concern of global warming.

Agriculture, forestry, and Marine impacts

Agriculture
For some time it was hoped that a positive effect of global warming would be increased agricultural yields, because of the role of carbon dioxide in photosynthesis. This may be true in some regions (such as Siberia), but recent evidence suggests global yields will be negatively affected. "Rising atmospheric temperatures, longer droughts and side-effects of both, such as higher levels of ground-level ozone gas, are likely to bring about a substantial reduction in crop yields in the coming decades, large-scale experiments have shown." The European heat wave cost the agricultural industry $10 billion in 2003.

Agriculture Cont.
In 2003 Europe suffered very low rainfall throughout Spring and summer, and a record level of heat damaged most crops from the United Kingdom and France in the Western Europe through Ukraine in the East. Bread prices have been rising in several countries in the region Duration of crop growth cycles are above all, related to temperature. An increase in temperature will speed up development. In the case of an annual crop, the duration between sowing and harvesting will shorten (for example, the duration in order to harvest corn could shorten between one and four weeks). The shortening of such a cycle would have an adverse effect on productivity because senescence would occur sooner. Temperature changes could also have serious implications for crops and trees that need vernalisation.

Agriculture Cont.
Crops such as rice and grain will likely produce more food as a result of the increased CO2 content of the atmosphere. The nutritional content of the food will, however decrease. The reduced nitrogen content in grazing plants has also been shown to reduce animal productivity in sheep, which depend on microbes in their gut to digest plants, which in turn depends on nitrogen intake.

Marine life
“Major fish species, including cod and haddock, have

sought out cooler waters in response to a 1C rise in the temperature of the North Sea over the past 25 years. In the same period, more exotic southern species have encroached on North Sea waters and established themselves.” (The Guardian) “Further temperature rises are likely to have profound knock-on effects for fisheries. If the North Sea continues to warm as expected, at least two species of commercial fish, blue whiting and redfish, will have disappeared by 2050 .” (The Guardian)

Marine life CONT.
The effects of global warming on marine life will likely continue to negatively effect the production of commercial fishers throughout the European region and not only those with operations centralized in the North Sea. The unsettling state of the already fragile marine system surrounding Europe will cause an increase in the cost of food production, which will result in increased domestic prices and decreased profits when concerned with international trade.

Forestry Related Impacts
Spain in a single year (1990) wild land fires damaged over 2,000,000 hectares of land and cost almost 680

million US dollars. (METLA) If numbers such as those were to increase the economic costs to the European people could be astronomical.

Tourism

Tourism
With the rise in global temperature and the resulting decrease in snowfall; Europe is likely to see a decrease in its winter tourist attractions centered around the Alps. Ski resorts will no longer have the luxury of naturally produced snowfall to attract tourist. Ski resorts will be forced to produce artificial snowfall to make-up for the lost snowfall, which mean increased costs and decreased revenues.

Health related impacts

Health related impacts
Many European Union nations offer national health care services. The increased frequency of extreme weather events and increased temperature could result in greater costs to those governments that offer such public services. A vast increase in cost could lead to a end to such services, which would only further increase the number of deaths caused by extreme weather events, because health care would no longer be a basic service provided to a given countries citizens.

Sources
Europa Homepage (http://europa.eu.int/index_en.htm) World Health Organization (http://www.who.int/en/) Climate Ark (http://www.climateark.org/) CIA World Factbook (http://www.cia.gov) Wikipedia (http://www.wikipedia.org/)

Sources Cont.
The Guardian (http://www.guardian.co.uk) Odysen (http://www.odysen.com) METLA (http://www.metla.fi/)


								
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