Climate change: India may be one of worst victims

Emerging economies, especially India, are projected to be affected the most by climatic changes, which are posing a danger of a major fall in global productivity, a study says. For every 2.5 degree celsius rise in global temperature, the damage to India is predicted to be 4.9 per cent of gross domestic product, the highest for any country, according to a key finding of a research by global financial services firm Morgan Stanley.

The study titled The Economics of Climate Change: A Primer correlates damages created by climate changes with GDP of different nations and concludes that the effects would vary considerably among countries, based on their exposure to climate-related damage, emission intensity and ability to adapt to such damage and cut carbon emissions. “In terms of exposure to climate-related damage, Korea, Pakistan, China, India and South Africa seem most at risk. With the exception of South Korea, these countries also have limited ability to cope with the high degrees of human vulnerability and elevated environmental stress levels,” the report points out.

It reveals that emerging markets seem more vulnerable to climate change than industrial countries because of their geographic exposure, low income levels, poor governance, limited availability of health-care services, less developed financial markets (lending and insurance), and a larger role of climate-sensitive sectors (agriculture, forestry, fishing and tourism). “Climate change could thus meaningfully affect the optimistic growth outlook for emerging market economies,” the report says.

In India, the agriculture sector would be most affected due to climate change, the study says.