A study just released by the science journal Nature makes the connection between the rise of global temperatures and the negative impact this has on GDP around the world. In the study, titled “Global non-linear effect of temperature on economic production”, researchers found that “fundamental productive elements of modern economies, such as workers and crops, exhibit highly non-linear responses to local temperature even in wealthy countries.” Meaning as temperatures rise, the effect is much greater and accelerates in ways that are potentially disastrous.
One of the lead authors, Marshall Burke of Stanford’s Department of Earth System Science, calls their study “the first evidence that economic activity in all regions is coupled to the global climate.”
The study continues, “If future adaptation mimics past adaptation, unmitigated warming is expected to reshape the global economy by reducing average global incomes roughly 23% by 2100 and widening global income inequality.”
The impact on poorer, less developed countries will be much greater than wealthier industrial countries.
This data changes the way we need to plan our financial futures. This is not “Leave It To Beaver” 1960. We are in a new world and need to re-examine how we as individuals get financially from point A to point B.
I will be hosting a webinar on Climate Change and the impact on the Economy in the coming weeks.
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