Friday, November 28, 2014

Climate Change Will Have Significant Impacts on Paraguay’s Economy

Paraguay is very vulnerable to climate change because of its heavy dependence on commodities production and because its infrastructure, logistical capacity and services sector are still in development, according to a study by the Economic Commission for Latin America and the Caribbean (ECLAC). The report The Economics of Climate Change in Paraguay (in Spanish only), which was presented in Asuncion this Thursday, November 20, evaluates the phenomenon’s potential impact on the agricultural and livestock sectors, health, water resources and biodiversity.

According to the study, the total cost of climate change on the economy is estimated at between $14.3 billion and $80.2 billion dollars, in the case of a continuous increase in the average temperature equivalent to 4.2 degrees Celsius by 2100 (this is the A2 scenario in the study), and between $9.7 billion and $50.5 billion dollars in the case of a 3.4 degree rise in the temperature over the same period (B2 scenario). By the end of this century Paraguay could be losing 2% of its gross domestic product annually.

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