3 Ways Climate Change Affects How We Spend Money
Climate change is predicted to have a major impact on many aspects of our lives. Average global temperatures will increase, sea levels will rise, allergiesmay get worse (seriously, it’s likely that they will) theres little question that there will be many complicated biological ramifications.
But what about the cultural and economic changes that might accompany climate change? Some have argued that climate change may increase violence, and surely there will be other societal implications we cant yet predict. Experts do have ideas, though, for what a warmer planet might mean for our spending habits. Here are three trends you may see come to pass in the coming decades:
Fewer luxury goods
A recent study put forth by Swiss banking group UBS suggests that in cities where the threat of climate-related disasters looms large, middle-class families are spending less on luxury goods than they have in the past. They found that in climate-strapped cities such as Los Angeles, Taipei, Tokyo, Mumbai, Shanghai and New Orleans, families had to spend more of their income on housing and repairs, forcing them to scale back on expensive splurges in the realms of entertainment and luxuries.
“More fear, less fun is how we might sum it up,” said the authors of the study.
The study noted that 2015 was the most expensive year on record in terms of natural disasters; a whopping $32 billion were lost within the first half of 2015 alone due to instances of extreme weather.
More sharing
Though the rise of the sharing economy is no doubt attributable to a number of factors, its a huge trend thats expected to continue growing as temperatures rise. This may or may not be a good thing for the environment. While car ownership appears to be decreasing overall, primarily among millennials, the word is still out on whether or not this will actually lead to a reduction in transportation emissions.
There are two sides to the argument, according to environmental blog Grist. On the one hand, sure, ride-sharing apps like Uber and Lyft free people from needing to use cars to get around on a daily basis. On the other, theres some evidence that the popularity and convenience of these unconventional cab services has actually increased the number of cars on the roadsparticularly in dense cities like New York and Chicago, where residents might have previously been more inclined to use public transportation.
Nonetheless, the sharing economy continues to grow, and its not just about cars. The popularity of sites like Airbnb remains strong, and according to a reportby PwC, 72 percent of Americans say theyre likely to participate in a sharing service in the coming two years.
More renewable energy
Though the warming of the planet is ultimately bad news, theres still plenty of indication that the green energy economy will continue to improve, diversify and grow. According to Scientific American, the U.S. Energy Information Administration is expecting renewable energy to be the fastest-growing source of power in the coming years.
More and more consumers are switching to green power within their own homes, if they have the means to do so. The Solar Energies Industry Association reported that the second half of 2015 was the biggest quarter yet for solar power, with nearly 1,400 megawatts of power installed nationwide.
As both individuals and communities look to transition to renewable energy, it will undoubtedly change the energy landscape. Well have to see what other surprises global warming and climate change action will have on consumer behavior in the coming years.
Disclaimer: The views expressed above are solely those of the author and may not reflect those of Care2, Inc., its employees or advertisers.
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