The Economics of Climate Change: A Review of the Impact of Global Warming on Economic Growth

Abstract

Climate change is causing significant disruptions to global economic growth, affecting industries, labor productivity, and creating economic instability. Developing economies, particularly those reliant on climate-sensitive sectors like agriculture and fisheries, are particularly vulnerable due to reduced crop yields, damaged infrastructure, and rising health costs from climate-induced diseases. This study uses a mixed-methods approach, combining data analysis with case study reviews, to assess the economic impacts of climate change and evaluate the effectiveness of mitigation and adaptation strategies. It highlights the dual challenges and opportunities presented by climate change, highlighting the need for investments in renewable energy, climate-resilient infrastructure, and sustainable agriculture. Delaying climate action leads to greater costs, including deepening economic inequalities, declining productivity, and heavier fiscal burdens on governments. The study proposes actionable policy recommendations, including implementing carbon pricing mechanisms, fostering public-private partnerships, and embedding climate goals into national and global economic strategies.

Keywords: Climate change, economic growth, global warming, sustainable development, mitigation strategies.