Publications

In most developing countries, the impact of climate change is of great importance given the high temperaturelevel, poor adaptation capacity, and lack of early warning system. Apart from the above, climate change affectseconomies whose economic activities are natural resource sensitive such as agricultural activities. Climate changewill have an impact on the global economy; hence, this paper attempted to understand these impacts.Consequently, data indicates that, more extreme weather has the potential to weaken economic growth throughdamage to the capital stock and labor supply, and labor productivity will weaken as the world economy adjusts tohigher temperatures. Similarly, inflation will rise through the growing cost of food, energy and insurance, just asmonetary policy will be limited as it attempts to combat the stag factionary pressures of climate change. Thegeneral consensus, which is supported by a growing amount of evidence, suggests that economies should actsooner rather than later to avoid potential future costs. Successful mitigation policies will necessitate actions fromall parties thus, this paper concluded that recognizing that quantifying the impact of climate change onshareholder’s investments is critical in creating an incentive to act, will enable stakeholders incorporate climatechange effects into an extended long-run return forecast for different asset classes.