Discuss the challenges that global warming presents to both Essay

Discuss the challenges that global warming presents to both governments and business - Essay Example Lord Stern further pointed out that the increasing levels of carbon dioxide and other toxic chemicals into our atmosphere seems to represent a ‘business-as-usual’ attitude which does not bode well for our environment. He calculates that every ton of carbon dioxide released into the atmosphere implies a $30 charge for the social cost and if not stopped, about 1-2% of our global GDP per year would be reduced. Our industries would also have to suffer the higher cost of climate change through adjustments in their carbon emissions (Meister, 2008). The tourist industry would also likely be impacted by global warming because businesses would incur losses or closures caused by waves, hurricanes, floods, and storms. These weather disturbances would likely reduce â€Å"international outbound and inbound tourist traffic† (Meister, 2008). Many heritage sites which are top tourist draws are also often damaged by these weather disturbances. In the end, these areas will lose the ir attractiveness; and as a result fewer tourists would visit these places (Meister, 2008). The challenge for the tourist industry would now be on how to stay economically viable despite global warming conditions. This would likely prompt these businesses to either find alternative sources of business or to help maintain such tourist spots and prevent them from deteriorating. The areas which would likely be impacted significantly by the global warming phenomenon are the third world nations like Bangladesh and areas like Mumbai in India and Indonesia; these areas have low coastlines and would likely be affected the most by global warming (Webber, 2002). The floods caused by monsoon rains as well as the droughts in some parts of the world are just some of the occurrences which are likely to be seen with more frequency in the coming years. The challenge for businesses in these areas would be on how to stay afloat amidst these weather disturbances which may destroy their crops and disru pt their supply chains. Insurers have a major share in companies, including those in the oil industry. The challenge for them is on the pressure they can exert on these companies in order to prompt them to recover their losses amidst natural disasters and also how these insurance companies can still gain profits (Webber, 2002). The challenge for businesses is on the switch to fuels which they have to implement in order to help reduce the emissions of toxic chemicals. The challenge is for them to use alternative sources of fuel which would create less greenhouse gases. Fuel switching would be a costly venture for most businesses because these sources of fuel are limited sources and would require more than the usual processing (Webber, 2002). Moreover, these alternative sources of fuel would cost millions to structure in to the industries. In the end, these financial costs are often passed to the consumers – consumers who are already undergoing various economic difficulties in recent years. Economists also point out that for companies who are located in areas which are often visited by droughts or floods, insurance companies may eventually find them uninsurable (Hagen, 2007). Many farmers would also likely invest in new areas which may be