Climate change poses a significant threat to global markets, impacting both supply and demand sides of the economy. On the supply side, rising temperatures, extreme weather events, and sea-level rise can disrupt agricultural production, impact infrastructure, and damage property. For instance, increased droughts in agricultural regions like California could lead to food shortages and price hikes, affecting commodity markets and the food processing industry. Similarly, hurricanes and floods can damage infrastructure and disrupt supply chains, impacting industries like energy, transportation, and manufacturing.
On the demand side, climate change can influence consumer behavior and investment patterns. Rising energy co....
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