The Cost of the increasing Tropical Storms: Examining the Long Run Economic Implications of Climate Change

Abstract

Climate change has altered economics profoundly; it impacts major aspects of the global economy and has consequences that can be unforeseeable in the long run. Atmospheric temperatures have been increasing twice as fast since 1981 and it has caused detrimental impacts globally; one being the increase in the intensity and frequency of tropical storms. Humans have contributed about 95% to this warming of the Earth. This paper explores the long run economic impacts of a specific consequence of this pressing issue to further understand the impacts of individual actions. The warming of the Earth has caused an increase in the frequency of tropical storms as well as the intensity. Severe tropical storms destroy agriculture and demolish infrastructure and commercial buildings. This heavily impacts the economy in various ways, and this paper will focus on the impact of long run economic growth of an economy. To combat this issue, the government and central bank can take corrective actions. However, these actions come with their own economic consequences, and it is important to be aware of the outcomes to make an informed decision on critical issues. Through extensive research, it can be concluded that the best course of action is a united act amongst the central bank and the government to grow the economy while combating climate change.