Globalization Amplifies Negative Effects of Climate Change
The forces of globalization have made the global economic system more vulnerable to production losses caused by climate change, new study shows.
The analysis by the Potsdam Institute for Climate Impact Research and Columbia University shows for the first time how enhanced connectivity of the global network of supply can amplify production losses, as these losses can be spread more easily across countries.
“Climate damages do not only depend on the warming of our planet, but also on the resilience of our societies and economies,” says lead author Leonie Wenz. “Our study shows that since the beginning of the 21st century the structure of our economic system has changed in a way that production losses in one place can more easily cause further losses elsewhere.“ The study examines the example of local heat-stress-related productivity reductions causing global effects. Across the world, production is interlinked. “What is self-evident for us today is really a phenomenon of the last two decades,” Wenz explains.