Economics Climate Change Economics Questions
Climate change affects the energy sector in several ways. Firstly, it increases the demand for energy as extreme weather events become more frequent, leading to higher energy consumption for heating and cooling purposes. Secondly, climate change impacts the availability and reliability of energy sources. For example, rising temperatures can reduce the efficiency of thermal power plants, while droughts can limit the water supply needed for hydropower generation. Additionally, climate change poses risks to energy infrastructure, such as power grids and pipelines, due to increased exposure to extreme weather events like hurricanes and floods. Lastly, efforts to mitigate climate change require a transition to cleaner and more sustainable energy sources, leading to shifts in the energy mix and potential disruptions for fossil fuel-dependent industries.