The Economics of Climate Change

Climate Change is believed to be the biggest threat to health, human development, and societal wellbeing of this century, affecting all walks of life.

Too often, measures taken to address the threat of climate change are hampered by the belief that doing so does not make sense economically. However in reality, not taking these measures is too high a price to pay.

The Global Humanitarian Forum reports that in 20 years, climate change will have caused 50,000 deaths and the annual economic costs will rise to $340 billion.

In Texas alone, the Environmental Defense Fund predicts that climate change could cause a .69 to 1.5 meter rise in the sea level of the Galveston Bay area within the next 100 years -- an area that comprises 20 percent of all the households in Texas -- if no preventative measures are taken. The predicted impacts of this rise in sea level include the displacement of 80,000 to 100,000 households, up to $12.5 billion in structural damages to buildings, and massive water contamination from local waste treatment sites.

This would be just one of many massive economic and social costs that Texas would bear if business continues as usual and no efforts to reduce greenhouse gas emissions are taken.

One of the biggest steps we as a society can take to address climate change is to transition from energy sources emitting gases that trap heat in the atmosphere to clean and renewable sources. While many oppose transition on the premise of protecting jobs in the coal and oil industries, it is important to consider the greater costs of not taking action as well as the potential for creating new jobs that would offset short-term increases in unemployment.

Renewable Energy can provide well paying, clean, and just jobs that support families and communities. Momentum for green energy technology continues to grow while America’s access to fossil fuels will only continue to tighten over time due to economic, political and environmental limitations. Because of this, green industries are a better investment in the long-term, even though they might be more costly in the short-term.

With the new stimulus package investing $15 billion or more per year into energy efficiency and renewable energy sources, it is estimated that this transformation of energy dependent industries will lead to 5 million “green” jobs ranging from entry-level to highly specialized needs.

The transition to renewable energy will not be easy or cheap. But when viewed in light of the costs of inaction and the potential for innovation and growth in “green” industry, transitioning to renewable energy is a small price to pay.