Social Risks Caused and Affected by Climate Change: The impact on Income and Poverty

Abstract

Climate change, in considerable part a consequence of industrialization and economic activities, and especially of carbon emissions, leading in various ways to human “diswelfare,” is considered a major contributor to a new breed of social risks that requires policy action at both the national and international levels. In fact, existing domestic and international case studies suggest that climate change is highly likely to have a negative impact on the real economy and employment. It could also drive up the prices of essential commodities like groceries, effectively reducing real income. Furthermore, climate change, which affects socially vulnerable groups more than others, is likely to exacerbate poverty and inequality. Addressing these climate-driven social risks would require further interdisciplinary research—both theoretical and empirical—and actionable policy strategies built on it.