Connect with us


Face up to the "gray rhino" of climate change (Economic Perspective)

News Agencies



In recent years, the frequency and intensity of global extreme weather and climate events have increased significantly, and compound extreme climate events are more likely to occur. Climate change is undoubtedly a huge "gray rhino" event for the global economy. It has various associations and effects with other traditional risks to form new and more complex risks and become a "risk multiplier" in economic and social life.

At present, more than 3.6 billion people around the world face water shortage crisis, and about 2.3 billion people face moderate or severe food insecurity. These existential crises are closely related to climate change. At the same time, many countries are in a critical period of energy transition. Extremely hot weather has led to a sharp increase in electricity demand, which has also seriously affected the power generation capacity of renewable energy and the operation of power infrastructure. Increasingly severe heat waves, floods and droughts, rising sea levels, climate-sensitive infectious diseases and other events have also damaged human health from multiple dimensions and reduced labor productivity.

Regarding the various risks caused by climate change and the huge challenges it brings to the global economy, some economists have used the "climate casino" as a metaphor. The medical journal "The Lancet" published the "2022 Lancet Population Health and Climate Change Countdown Report", which pointed out that compared with the 1950s, the land area affected by extreme drought events has increased by about 30%. In 2021, due to extreme heat, humans will lose almost 500 billion hours of work, reducing food supply and income, and related economic losses will be about 700 billion US dollars. This year, in addition to geopolitical conflicts, various types of extreme weather have also triggered energy crises and blackouts in many places around the world. Major rivers in some countries have dried up, further hindering the flow of bulk goods such as raw materials, energy and food, and making the global economy worse under the epidemic.


Aiming at the complex relationship between climate and economy, the economics of climate change has become an emerging discipline and has received increasing attention. The main task of this discipline is to use economic tools to weigh the climate losses under different temperature control targets and compare them with the cost of emissions reduction inputs, so as to determine appropriate emission reduction targets and paths. A few days ago, a paper in the "Nature" magazine stated that the social cost of each ton of carbon dioxide emissions is about 185 US dollars. Although the accuracy of such estimates needs to be verified, they reflect the idea of comprehensively using economic means to deal with climate issues. As emphasized by the Nobel laureate in economics and American climate economist Nordhaus, it is precisely because the price of carbon emissions has not been clarified and quantified that the emissions continue to increase and the climate continues to warm. Therefore, it is very important to determine the price of carbon. Significance.

Compared with general environmental issues, climate change has a wider impact and involves a wider range of actors. If a country takes the initiative to reduce emissions, the cost of emission reduction will be borne by the country, and the results of emission reduction will be shared globally; if it increases emissions, the cost of emissions will be borne by the world, and the benefits of emission will be exclusively enjoyed by the country. To resolve this contradiction, we must rely on an effective international coordination mechanism. Under the guidance of the "Paris Agreement", countries around the world have determined nationally determined contribution targets and designed incentive mechanisms to varying degrees. Dozens of them have adopted market tools such as carbon tax or carbon trading to reduce emissions. However, there is still a significant gap between the current actions in the world and the overall temperature control goals, especially for developing countries that urgently need more financial, technical and capacity-building support. The international community should further promote climate investment and financing and international coordination, and jointly hedge the imminent climate risks.

(Author unit: Global Energy Internet Development Cooperation Organization Economic and Technological Research Institute)


"People's Daily" (version 15, November 22, 2022)

(Editors in charge: Hu Yongqiu, Yuan Bo)

Share for more people to see

The news is published by EMEA Tribune & Peoples Daily Online210520-twitter-verified-cs-70cdee.jpg (1500×750)

Continue Reading


Breaking News

Editor Pick’s

Latest Entertainment

Entertainment2 hours ago

Harrison Ford Would ‘Love’ to Do a Project with Wife Calista Flockhart — But They ‘Haven’t Found One Yet’

Harrison Ford and Calista Flockhart attend the “1923” LA Premiere Screening & After Party Alberto E. Rodriguez/Getty Images Harrison Ford...

Entertainment3 hours ago

Sopranos Actor John Ventimiglia’s Daughter Odele Dead at 25

The family of The Sopranos actor John Ventimiglia is mourning the death of his daughter Odele Cape Ventimiglia. The 25-year-old...

Entertainment3 hours ago

Jay Leno Broke His Collarbone, Ribs and Kneecaps in Motorcycle Crash Last Week

Jay Leno is on the mend again! In an interview with the Las Vegas Review-Journal published Thursday, the comedian, 72, revealed...

Entertainment3 hours ago

Jay Leno Broke His Collarbone, Ribs & Kneecaps in Motorcycle Crash Last Week

Comedian Jay Leno attends the 2016 St. George Theatre Gala at St. George Theater on March 11, 2016 in New...

Entertainment3 hours ago

Pamela Anderson doc director says ‘Pam & Tommy’ ‘retraumatized’ her: ‘That was really difficult to watch her go through’

Pamela Anderson invited documentary maker Ryan White into her home for Netflix’s Pamela, A Love Story, which is out on...

Entertainment15 hours ago

Stephen Dorff slams ‘garbage’ superhero movies, Marvel’s ‘Blade’ reboot: ‘We already did it and made it the best’

Stephen Dorff attends the premiere of his movie “Divinity” on Jan. 21 at the 2023 Sundance Film Festival in Park...

Entertainment15 hours ago

Yoshiki, glam-rocker responsible for ‘changing Japan’s culture,’ eyes U.S. stardom with supergroup the Last Rockstars: ‘It’s kind of cool to break some kind of boundary again’

When Japanese musician/composer/producer Yoshiki founded seminal glam-metal band X Japan back in 1982, pounding the drums in kabuki-esque facepaint, peroxide-blond...

Entertainment18 hours ago

Britney Spears asks fans to respect her privacy after police welfare check: ‘Things went a little too far’

Britney Spears says things went “too far” after fans called police to her home. (Photo: FilmMagic) Britney Spears broke her...


Latest Sports

Sports39 mins ago

‘Nothing’ about Bengals offense impresses Chiefs LB Willie Gay

Joe Burrow's Bengals are 3-0 against the Chiefs the past two seasons.

Sports59 mins ago

Trevor Immelman embracing second act in golf as CBS’s new lead analyst: ‘I was blown away’

The former Masters winner and Presidents Cup captain will make his debut on Friday alongside Jim Nantz at the Farmers...

Sports1 hour ago

Miami fires offensive coordinator Josh Gattis after just one season

Miami's offense took a big step back in 2022 during Mario Cristobal's first season as coach.

Sports2 hours ago

Leon Draisaitl is NHL’s ‘Mr. Game-Winner’

This week, we look at Leon Draisaitl's clutch ability, a Canadiens goalie flying under the radar, the Bruins' incredible pace,...

Sports2 hours ago

Deion Sanders confirms Mike Zimmer is joining his staff at Colorado

Former Vikings head coach Mike Zimmer will have a role on Deion Sanders’ staff at the University of Colorado. Sanders...

Sports3 hours ago

Geno Auriemma: Lou Lopez Senechal has been ‘more important’ to UConn than anyone else has to her team

UConn coach Geno Auriemma gave high praise to his senior guard Lou Lopez Senechal after her 26-point performance against Tennessee...

Sports3 hours ago

Hardwood Hawgs Podcast: Hogs are hot going into Baylor game


Sports3 hours ago

Zach Edey has 19 points, No. 1 Purdue beats Michigan 75-70

Zach Edey had 15 of his 19 points in the first half and Fletcher Loyer finished with 17 points to...

Technology Hot News

Technology1 week ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology1 week ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology1 week ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology1 week ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology1 week ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology1 week ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology2 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology2 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...