The Czechia can make money from warming, economists have calculated

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Calculations by the consulting company Deloitte warn that the Czechia can make money on climate change and higher temperatures. However, the impacts on individual countries of the world vary significantly. The increase in the average annual temperature will have a predominantly positive impact on the Czech economy. In the mildest scenario of the development of the concentration of greenhouse gases in the atmosphere, GDP per capita in the Czech Republic will be 0.3 percent higher at the end of the 21st century than in today's climatic conditions. This follows from the analysis of the Economics of Climate Change, in which the analytical team of Deloitte in the Czech Republic calculated the climatic influences on the economy of the Czech Republic and the rest of the world.

David Marek, co-author of the study and chief economist at Deloitte said, Climate change is having far reaching adverse effects on natural systems and human society. At the economic level, climate change primarily concerns agricultural production. However, the impact is and will be evident in a number of other sectors, such as transport, energy, tourism or construction.

In the case of the warmest scenario, GDP in the Czech Republic per capita in 2096 would be 1.1 percent higher than at present. At first glance, this may seem small, but the cumulative impact from 2020 to the end of the century would be 8.6 percent in the mildest scenario and up to 25 percent in the fastest warming scenario, the study said.

According to her, only agriculture in the warmest scenario in the Czech Republic would have to face negative impacts. At the global level, on average, according to the study, the economic impacts should also be positive in all scenarios. However, the economic impacts differ significantly according to the climate zones, looking at them more closely, he states below.

Václav Franče, co-author of the study and economist at Deloitte said. from an economic point of view, the optimal average annual temperature is 15.1 degrees Celsius. In countries with higher temperatures, the negative effects of expected climate change should prevail. On the contrary, countries with colder climates can look forward to the gradual warming that will reduce the costs associated with the winter season.

According to the analysis, global warming will cause the most problems for African and Arab countries, especially Mali, Mauritania, Niger, Qatar, Kuwait, the United Arab Emirates, Burkina Faso, Sudan, Bahrain and Chad. By contrast, Russia, Canada, Mongolia, Finland, Kyrgyzstan, Norway, Tajikistan, Sweden, Iceland and North Korea should benefit the most from rising temperatures.

The Deloitte study also focused on the advantages and disadvantages of different approaches to reducing greenhouse gas emissions. Progress in the development of renewable energy and electromobility technologies significantly reduces costs and makes them available in the Czech economy. It is more difficult to enforce them politically, because they will temporarily lead to an increase in energy prices.