Research and Global Warming: Economic Consequences on Business

Abstract

Global warming is the most crucial problem threatening the earth. The Global warming occurs when carbon dioxide (CO2) and other air pollutants collect in the atmosphere and absorb sunlight and solar radiation that have bounced off the earth’s surface. The aim of this article is to discuss the effect of global warming on business and effect on the global economy. Greenhouse gases, mainly carbon dioxide, and human activities emission increase global warming. The CO2 results from burning fossil fuels, such as oil, natural gas and coal, to obtain energy for transportations, industry,…etc. Also, it results from burning trees for energy and burning forests to create pastures and plantations. All these activities produce huge amounts of CO2 emission to the atmosphere. Therefore, the temperature of the earth increases. Any increase in the temperature will lead to catastrophic consequences for all living things on the earth. These consequences on living things have a direct relation to economy. There is an increase in the economic damages by approximately 0.9 percent of global output. The 0.9 percent of estimated 2014 U.S. Gross Domestic Product (GDP) is approximately $150 billion. Accordingly, fast solution should be applied to solve the global warming crises. Renewable energy sources, such as, solar energy, wind energy, hydrogen energy, etc, are considered the most important solution for decreasing the CO2 emission, consequently, the earth temperature will be controlled and economic damage will be reduced.