Long Run Economic Growth
In November 2018, a 1300-page study compiled by 13 government agencies, concluded that by the end of this century, climate change could be responsible for cutting GDP per capita by ten percent. (An excerpt is on the next page).Please read the following articles on how climate change could impact the economy:1) The first is written by Carol Davenport and Kendra Pierre-Louis in the November 23rd, 2018 issue of the New York Times entitled, U.S. Climate Report Warns of Damaged Environment and Shrinking Economy2) The second entitled Climate Change and the economy: The cost of doing nothing in the June 28th 2014 issue of the Economisthttp://www.economist.com/news/united-states/21605936-scorched-farms-flooded-homes-and-lower-productivity-cost-doing-nothingYour Assignment(a) Describe at least three mechanisms through which climate change is likely to affect the long run aggregate supply curve (for example: infrastructure, land quality, human health etc.).This answer should be between 300- 400 words long. Please explain your answers using your own words. You will need to revisit Unit 6 (Long-Run Economic Growth) in addition to the articles in order to provide full answers. I would like to see descriptive details from the articles but I also want you to explicitly connect what the articles describes to economic concepts you learned in Unit 6, as well as the portions from Chapter 24 (in Sections 2 and 3) that concern the Long-run Aggregate Supply curve.(b) If you were a policymaker working for the U.S. government, what policies would you recommend to deal with the challenge posed by climate change. Would you favor mitigation strategies -tackling the causes and minimizing the impact of climate change? Would you favor adaptation strategies -focused more on reducing the negative effects of climate changes without trying to change the trajectory of climate change? Your answer should be consistent with your analysis from part (aThis answer should be between 100-200 words long. I would expect you to provide a couple of specific policy proposals and make an argument for emphasizing either mitigation or adaptation….Excerpt from the Fourth National Climate Change Assessment Report. Volume II. Summary findings on the Economy.https://nca2018.globalchange.gov/Without substantial and sustained global mitigation and regional adaptation efforts, climate change is expected to cause growing losses to American infrastructure and property and impede the rate of economic growth over this century.In the absence of significant global mitigation action and regional adaptation efforts, rising temperatures, sea level rise, and changes in extreme events are expected to increasingly disrupt and damage critical infrastructure and property, labor productivity, and the vitality of our communities. Regional economies and industries that depend on natural resources and favorable climate conditions, such as agriculture, tourism, and fisheries, are vulnerable to the growing impacts of climate change. Rising temperatures are projected to reduce the efficiency of power generation while increasing energy demands, resulting in higher electricity costs. The impacts of climate change beyond our borders are expected to increasingly affect our trade and economy, including import and export prices and U.S. businesses with overseas operations and supply chains. Some aspects of our economy may see slight near-term improvements in a modestly warmer world. However, the continued warming that is projected to occur without substantial and sustained reductions in global greenhouse gas emissions is expected to cause substantial net damage to the U.S. economy throughout this century, especially in the absence of increased adaptation efforts. With continued growth in emissions at historic rates, annual losses in some economic sectors are projected to reach hundreds of billions of dollars by the end of the centurymore than the current gross domestic product (GDP) of many U.S. states.USGCRP, 2018: Impacts, Risks, and Adaptation in the United States: Fourth National Climate Assessment, Volume II [Reidmiller, D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K. Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research Program, Washington, DC, USA, 1515 pp. doi: 10.7930/NCA4.2018.