Environmental Effects Of Climate Change

Scientists and environmentalists started talking about global warming and the dangers of climate change long time ago but it is now when the consequences of these effects began to manifest themselves in a clearer and even worrisome manner. The temperatures on Earth are rising, the sea level is rising, the amounts of CO2 and ozone in the atmosphere are increasing, the amount and timing of precipitation is changing. All of these issues show tendency to worsen in the future, though it is hard to predict exactly by how much or at what rate they will unfold. One thing is clear – climate change has an impact on almost every area of our life and it deserves our attention and timely response.

One sector that is particularly threatened by the climate change is the agricultural sector, because the amounts of water, sunlight, and heat available are important determinants in the crops growth process. Although some of the changes, for example higher temperatures and longer growing seasons, might bring benefits (especially to countries in the Northern hemisphere), others like reduced water availability and frequent extreme weather events would definitely have adverse effect on the sector affecting the crop yields and the food security around the world. Moreover, most impacts are likely to occur in areas already exhibiting socio-economic and environmental difficulties (water scarcity is an example), such as the countries in tropical and sub-tropical regions (African countries are among the most endangered ones). As a result, farmers will have to adjust their practices and technologies of production in order to be able to continue meeting food requirements. Nevertheless, the effects of global warming will be uneven across Europe, which could res...

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...e covering for example hail, frost, and floods, or yield insurance which covers all climatic risks. Combined risk insurances cover most risky events that can affect the crops but they do not cover against systematic risk which requires high level of reinsurance costs and can be covered only if there is public support or public reinsurance. Systematic risks or risks affecting vast regions or a lot of farmers used to be non-insurable due to the high magnitude of the indemnities. But the yield insurance covers all kinds of climatic risks including droughts, storms, frosts, fires, hail. In some places (not in Europe) it can cover even against plant diseases and pest. Since the demand for agricultural insurances is growing, the market is expanding and different instruments like index insurance products, weather derivatives and weather options are already in circulation.