Contemporary Risk Management - Climate Change Essay

Contemporary Risk Management - Climate Change - Essay Example Many of these issues have direct implications for the risk management and insurance industry. Global warming refers to the gradual warming of the earth’s atmosphere that has been documented over the last 150 years. Global warming can result from natural fluctuations in climate or can be induced by human causes. There had been considerable debate as to whether human activity in producing increased emissions and concentrations of greenhouse gases has been associated with the global warming trend. Greenhouse gases effectively trap the heat in the atmosphere. Greenhouse gases, principally CO2, but also ozone, methane, and nitrous oxide, are produced by burning fossil fuels like oil, coal, and natural gas. Energy producers, automobile users, manufacturers, and households all burn fossil fuels and produce greenhouse gas emissions. The rising concentrations of CO2 that are causing global warming principally come from energy production, factories, homes, automobiles, and deforestation. Rising CO2 concentrations are a symptom of expanding economies, jobs, and standards of living. Indeed these economic benefits form the most frequently sited argument for resisting the Kyoto Treaty and other control techniques. For instance, President Bush stated in rejecting the Kyoto Treaty that it would â€Å"have a negative economic impact, with layoffs of workers and price increases for consumers† (Sanger, 2005, 24). Some studies have indicated that agriculture and forestry will actually improve from global warming. For instance, the NAST report finds that U.S. crop productivity is very likely to increase over the next few decades because of global warming. While benefiting consumers, falling crop prices and competitive pressures are likely to stress some farmers. The NAST report also found that forest productivity is likely to increase over the next