Climate change will cause an increase in prices of goods, study shows

Published by Eco Media on

climate change.

Image credit: United Nations

 

KUMASI (Eco Media) — New research has shown that the solutions and initiatives businesses will take to mitigate climate change will lead to an increase in the price of goods and services.

This is because businesses will spend on mitigating the climate change risk, which will come as a financial burden to them. They will pass on this burden to consumers by increasing charges for goods and services.

“The investments firms make to be climate change-compliant can be passed on to consumers. Most of the cost, if not all, especially in sectors that are not price competitive, is the source of the price hikes,” explained the lead researcher of the study, Dr. Osei Yeboah, PhD.

The research, ”the Impact of the Local Green Economy of Ghana: A General
Equilibrium Analysis” was conducted by a diverse group of researchers from Ghana and the United States and was focused on Ghana’s green economy and its economic viability.

The green economy is an economic system that focuses on sustainability and environmental responsibility. It aims to balance economic growth with the conservation of natural resources and the reduction of environmental impacts.

In a green economy, activities and industries prioritize practices that are eco-friendly, promote clean energy, reduce pollution, and contribute to the overall well-being of the planet.

It’s essentially about creating a way of doing business that benefits both people and the environment, moving away from traditional, resource-depleting practices towards a more sustainable and harmonious approach.

With this study, the researchers aim to fill the knowledge gap about Ghana’s green economy and demonstrate its economic potential.

 

By: Ibrahim Khalilulahi Usman


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