PLEA Network

17 June 2016, Climate News Network, Warming raises global economic threats. Research shows that the effects of extreme heat and weather events on production of raw materials has far-reaching and costly financial implications.  Climate change is likely to affect the global economy− and it may already have begun to affect raw material supplies from tropical regions, according to new research. That is because, in a global economy, the flow of wealth depends on a secure supply chain, and productivity that depends on outdoor work in the tropics could become more precarious in a warming world. Even in a temperate zone country such as Australia, researchers have linked heat extremes with economic losses. And climate-related disasters are on the increase, claiming not just lives but a growing economic toll. Research has also indicated that, without drastic action, some regions may reach temperatures that could make them uninhabitable. Heat exhaustion But there is already evidence that at temperatures around or above 25°C, labour productivity declines. At significantly higher temperatures, heat exhaustion becomes a hazard. And if output falls at a source of materials, then workers far away who depend on those supplies will also see their productivity falter. Two German scientists report in Science Advances journal that they tracked economic traffic from 26 industry sectors – including mining, quarrying, textiles, forestry and agriculture – all the way to final demand in 186 countries. They matched temperature, population and global economic connections from 1991-2011, and then fed into their computer simulations the known consequences of heat stress on workers. Their finding was that interdependence had increased, and with this interdependence had come vulnerability.Read More here