Economic impacts of abnormal climate in industry part
Climate Change 2001 report of the IPCC in 2001, according to the disaster caused by climate change and extreme weather events, the social impact of the direct economic damage is about $ 3 billion annually in the 1950s, but the 1990s saw a mere $ 40 billion every year, enough to significantly increased . And $ 9.6 billion of the $ 40 billion were estimated due to destruction of the infrastructure costs. Current extreme weather events occur continuously, the annual amount of damage in the 21st century will have to reach $ 100 billion, of which the damage caused by destruction of infrastructure each year is expected to reach $ 25 billion.
Climate change will not only increase the average temperature, but cause extreme weather such as intense heat, extreme cold, frequent floods and hurricanes. These abnormal weather phenomena degrade the performance of the various facilities and equipment or work as factor of break down. If lightning strikes occur frequently, various electrical and electronic products become more frequent failures. And floods or hurricanes or extreme cold/hot occur frequently affect various the performance of manufactured goods. Thus, the companies of producing manufactured goods should strive to reduce damage from natural disasters. Construction industry and service industry are also expected to affect by climate change. For example, in the construction industry, it is expected very positive factor because of increasing of construction projects to prevent damage due to hurricanes, floods or sea level rise. Meanwhile, the service sector, the rising of average temperature in summer leads to activate recreational industry. Also it seems that financial derivatives which can decrease damage of climate change will be developed. Climate changes can also affect the level of national income to the domestic scale. Rising of Income levels influences positive impact throughout the manufacturing but the reverse is also possible. In addition, the size and pattern of demand can be influenced by how the income distribution of high-income and low-income will change.
On the other hand, the supply side, the price of production factors or changes in supply and demand due to climate change seems to affect domestic manufacturing. First, domestically, the abnormal climate decreases energy efficiency of manufacturing and then increases the energy consumption. In addition, width of cooling energy demand for summer is greater than width of energy for heating in winter. Therefore, there will be increase of domestic energy consumption. In this case, energy prices are likely to rise and Importance of efforts to increase energy efficiency is to be increased further. In addition to domestic factors and international energy prices would also rise due to climate change is a significant rise in energy costs of domestic manufacturing as it seems to weigh large.
Abnormal climate events are increasingly over the world. Due to heavy snowfall in the Northeastern United States, flood in the United Kingdom, Europe and Brazil, drought in Australia and Argentina, the economic damage is serious. Snowfall in the United States last winter quarter private consumption growth slowed last year announced preliminary figure of 3.2% a month ago to 2.4% in the preliminary was significantly lowered. In the United States, private consumption growth slowed by snowfall last winter and quarter growth rate of last year was significantly lowered from 3.2% which is announced a month ago to 2.4%.
Many Northern European countries, including Britain, which were seriously damaged by floods and Japan and Korea which had severe damage of snowfall also forecasted the first quarter growth rate will be scaled down. In in Argentina and Brazil, suffered from withdrawals of capital after tapering promotion, fear of putting the already difficult foreign debt situation even worse was raised by decrease of agricultural exports as drought and floods.
The economic impact of climate grows increasingly; many new words related abnormal climate events were introduced. Representative words are froznomics(frozen+economics), icepocalypse(ice+apocalypse) which mean economy is frozen by weather, and snomageddon(sonw+amageddon) which mean end of the world will be occurred due to heavy snow.
Climate Change 2001 report of the IPCC in 2001, according to the disaster caused by climate change and extreme weather events, the social impact of the direct economic damage is about $ 3 billion annually in the 1950s, but the 1990s saw a mere $ 40 billion every year, enough to significantly increased . And $ 9.6 billion of the $ 40 billion were estimated due to destruction of the infrastructure costs. Current extreme weather events occur continuously, the annual amount of damage in the 21st century will have to reach $ 100 billion, of which the damage caused by destruction of infrastructure each year is expected to reach $ 25 billion.
Climate change will not only increase the average temperature, but cause extreme weather such as intense heat, extreme cold, frequent floods and hurricanes. These abnormal weather phenomena degrade the performance of the various facilities and equipment or work as factor of break down. If lightning strikes occur frequently, various electrical and electronic products become more frequent failures. And floods or hurricanes or extreme cold/hot occur frequently affect various the performance of manufactured goods. Thus, the companies of producing manufactured goods should strive to reduce damage from natural disasters. Construction industry and service industry are also expected to affect by climate change. For example, in the construction industry, it is expected very positive factor because of increasing of construction projects to prevent damage due to hurricanes, floods or sea level rise. Meanwhile, the service sector, the rising of average temperature in summer leads to activate recreational industry. Also it seems that financial derivatives which can decrease damage of climate change will be developed. Climate changes can also affect the level of national income to the domestic scale. Rising of Income levels influences positive impact throughout the manufacturing but the reverse is also possible. In addition, the size and pattern of demand can be influenced by how the income distribution of high-income and low-income will change.
On the other hand, the supply side, the price of production factors or changes in supply and demand due to climate change seems to affect domestic manufacturing. First, domestically, the abnormal climate decreases energy efficiency of manufacturing and then increases the energy consumption. In addition, width of cooling energy demand for summer is greater than width of energy for heating in winter. Therefore, there will be increase of domestic energy consumption. In this case, energy prices are likely to rise and Importance of efforts to increase energy efficiency is to be increased further. In addition to domestic factors and international energy prices would also rise due to climate change is a significant rise in energy costs of domestic manufacturing as it seems to weigh large.
- Example of economic impacts in real
Abnormal climate events are increasingly over the world. Due to heavy snowfall in the Northeastern United States, flood in the United Kingdom, Europe and Brazil, drought in Australia and Argentina, the economic damage is serious. Snowfall in the United States last winter quarter private consumption growth slowed last year announced preliminary figure of 3.2% a month ago to 2.4% in the preliminary was significantly lowered. In the United States, private consumption growth slowed by snowfall last winter and quarter growth rate of last year was significantly lowered from 3.2% which is announced a month ago to 2.4%.
Many Northern European countries, including Britain, which were seriously damaged by floods and Japan and Korea which had severe damage of snowfall also forecasted the first quarter growth rate will be scaled down. In in Argentina and Brazil, suffered from withdrawals of capital after tapering promotion, fear of putting the already difficult foreign debt situation even worse was raised by decrease of agricultural exports as drought and floods.
The economic impact of climate grows increasingly; many new words related abnormal climate events were introduced. Representative words are froznomics(frozen+economics), icepocalypse(ice+apocalypse) which mean economy is frozen by weather, and snomageddon(sonw+amageddon) which mean end of the world will be occurred due to heavy snow.
Unmanageable variables “tsunami”
According to the most weather-related organizations there is expected to appear La Nina phenomenon by winter abnormal cold wave and the thawing of the Arctic. La Niña is phenomenon water temperature is 0.5 degrees Celsius lower than normal in central equator and eastern Pacific, often appeared as the Arctic sea ice is melting in earnest.
La Nina phenomenon is intensified as the possibility of extreme weather around the globe is increasing. If La Niña occurs, while near the central Pacific suppressed convection flow, near Indonesia enhanced convection currents bring a change in weather patterns. The tsunami that occurred in Indonesia and Japan, there is analysis that shows La Nina phenomenon is associated with the situation. This results in the strengthening of hurricane activity, drought and flood, abnormal low temperature. And there is likely to give higher production disruptions such as production of raw materials like agricultural product. This has potential to occur agflation(agriculture+inflation), if La Nina phenomenon is appeared in this summer. Agflation is phenomenon refers to every countries’ price is increasing by unusual rising of agricultural prices.
If the La Nina phenomenon is reproduced in this summer emerging nations which are suffered from fund separation can be slowed in terms of growth rate unexpectedly. China, the biggest damaged country from 2011’s La Niña phenomenon, announced 'consumer price stability and the National Basic Livelihood Security' on clause 16 of the notice along the rising up waterfront life. Main contents are expansion of agricultural production and agricultural supply stable through reducing distribution costs, temporary subsidies for social security layer, if necessary, to intervene in commodity and raw material prices, production, etc.
Impactive variables on a country's economy can be divided into two groups depending on possibility of administration of prediction. Control variables for the prediction and management of one and the other one is the behavioral variables which are just to accept. Rapidly increasing behavioral variables, especially tsunami damage scale is beyond imagination among Indonesia, Japan, finally, there are 'behavior variable of tsunami' situation to emerge.
52% of GDP and 80% of industry accepts the influence of weather
In risk theory, predicting behavior variable is difficult but classified as tail risk which affect is large once it occurs. In statistics, natural, social, political and economic phenomena usually be described as a bell-shaped normal distribution. However in some cases, symptoms that the probability is low often appear and frequency is much bigger than predicted one. This process makes tail risk occur. Weather is representative of behavior variable. And according to analysis of seoul national university and samsung, 52% of GDP and 80% of industry in Korea are influenced by weather directly or indirectly. "The weather move the market and economy ' is now enough to say, on the other hand, the impact of the weather on market and economy is increasingly growing.
According to the most weather-related organizations there is expected to appear La Nina phenomenon by winter abnormal cold wave and the thawing of the Arctic. La Niña is phenomenon water temperature is 0.5 degrees Celsius lower than normal in central equator and eastern Pacific, often appeared as the Arctic sea ice is melting in earnest.
La Nina phenomenon is intensified as the possibility of extreme weather around the globe is increasing. If La Niña occurs, while near the central Pacific suppressed convection flow, near Indonesia enhanced convection currents bring a change in weather patterns. The tsunami that occurred in Indonesia and Japan, there is analysis that shows La Nina phenomenon is associated with the situation. This results in the strengthening of hurricane activity, drought and flood, abnormal low temperature. And there is likely to give higher production disruptions such as production of raw materials like agricultural product. This has potential to occur agflation(agriculture+inflation), if La Nina phenomenon is appeared in this summer. Agflation is phenomenon refers to every countries’ price is increasing by unusual rising of agricultural prices.
If the La Nina phenomenon is reproduced in this summer emerging nations which are suffered from fund separation can be slowed in terms of growth rate unexpectedly. China, the biggest damaged country from 2011’s La Niña phenomenon, announced 'consumer price stability and the National Basic Livelihood Security' on clause 16 of the notice along the rising up waterfront life. Main contents are expansion of agricultural production and agricultural supply stable through reducing distribution costs, temporary subsidies for social security layer, if necessary, to intervene in commodity and raw material prices, production, etc.
Impactive variables on a country's economy can be divided into two groups depending on possibility of administration of prediction. Control variables for the prediction and management of one and the other one is the behavioral variables which are just to accept. Rapidly increasing behavioral variables, especially tsunami damage scale is beyond imagination among Indonesia, Japan, finally, there are 'behavior variable of tsunami' situation to emerge.
52% of GDP and 80% of industry accepts the influence of weather
In risk theory, predicting behavior variable is difficult but classified as tail risk which affect is large once it occurs. In statistics, natural, social, political and economic phenomena usually be described as a bell-shaped normal distribution. However in some cases, symptoms that the probability is low often appear and frequency is much bigger than predicted one. This process makes tail risk occur. Weather is representative of behavior variable. And according to analysis of seoul national university and samsung, 52% of GDP and 80% of industry in Korea are influenced by weather directly or indirectly. "The weather move the market and economy ' is now enough to say, on the other hand, the impact of the weather on market and economy is increasingly growing.