Researchers have examined the impact of unpredictable weather patterns, which are becoming more severe due to climate change, on global production and consumption across various income levels.
A recent study conducted by the Potsdam Institute for Climate Impact Research (PIK) investigated how erratic weather events, made more intense by climate change, influence production and consumption around the world among different income groups.
The findings align with prior research, indicating that the world’s poorest individuals face the greatest economic threats from climate change. Interestingly, the risks for wealthier individuals are escalating at the fastest rate. Countries undergoing economic transitions, such as Brazil and China, are also at significant risk of experiencing drastic effects and negative trade repercussions. Among various nations, these countries encounter the most considerable dangers from extreme weather and unfavorable trade impacts.
As global temperatures continue to rise, these risks are expected to intensify in many countries, creating ripple effects throughout international supply chains that will affect products and services globally.
“Over the next two decades, climate change is going to heighten economic risks stemming from unpredictable weather,” explains PIK researcher Anders Levermann. “While the poorest populations will continue to face the highest risks, the surge in economic threats is most pronounced among the wealthy in nations like the US and those in the EU. Consumers everywhere, no matter their income level, will encounter growing difficulties due to climate change – without a shift towards carbon neutrality, we will ultimately struggle to confront these challenges.”
