Could the stock market’s next black swan be climate change? | Mint - Mint
Could the stock market’s next black swan be climate change? | Mint
Could the stock market’s next black swan be climate change?
Summary
- Equity investors seem blissfully unaware of what's headed their way. While they won't care much about future losses in the early days of climate change, these losses will become painful as global warming worsens. They mustn't say nobody warned them.
Fighting climate change is difficult partly because humans are weird. It’s difficult to get them to care about their own future well-being much less that of entire future generations. People blow retirement funds. You think they care about their imaginary great-grandkids?
Business News,
Market News,
Breaking News Events and
Latest News Updates on Live Mint. Download The
Mint News App to get Daily Market Updates.
more
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”