Friday, January 19, 2007

Global Warming Strengthening the Economy

While we keep hearing from environmentalists about alleged negative effects from global warming, it seems that it can have positive effects. As is explained here,warmer weather might be the main reason for the stronger than expected U.S. economy. This is because warmer weather means that activities supressed by winter weather will take place after all. Moreover -and this is not mentioned in the story- the warmer weather is a key reason for why oil prices have fallen so much, as less heating is needed. Lower oil prices have been a key factor in boosting the purchasing power of U.S. consumers.


Anonymous Thomas Funke said...

Short term economics at the sacrifice of long term global health and catastrophie. I guess when the sea rises, the water will be closer to our homes and it will be a shorter drive?

10:28 PM  
Anonymous Thomas said...

You may need less heating in a warmer world, but you need more air conditioning, and more energy is used for the latter purpose globally.

9:54 AM  
Blogger stefankarlsson said...

Thomas, I don't think that's true. I've never heard of oil price fluctuations related to heat waves. But oil prices do instantly respond mild winters by falling or to cold snaps by rising.

10:14 PM  

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