Economics of climate change

Climate change is one of the biggest environmental issues of the century. The climate plays such a major part in our planet’s environmental system that even minor changes have impacts that are large and complex. The impacts of climate change are diverse and could be damaging to billions of people across the world. Climate change impacts particularly in water resources will have cascading effects on human health and many parts of the economy and society, as various sectors such as agriculture, energy and hydropower, navigation, health, and tourism directly depend on water-as does the environment (UN 2009). It necessitates strong actions to reduce the risk of very damaging and potentially irreversible impacts of climate change in water resources, societies, and economies.