Impact of Climate Change on Chinese Economy

Abstract

After experienced all sorts of extreme weather, people start to pay more attention to the impact of climate change on the economy, not just narrowing on the effects on the people’s health. The purpose of this paper is to examine the impact of climate on the economy and the feasible measures to reduce it. The author first analyzes the causes of climate change, which impacts a lot on Chinese economy. Next, the author divides the impact of climate change on economy into macro and micro aspects, which is mainly reflected in the impact of climate change on the stock market, the operation and decision-making of enterprises and investment institutions. In addition, the author also puts forward four aspects, namely green quantitative easing, hedging risks, improving carbon information transparency and improving ESG database. Finally, strategies for reducing the economic impact of climate change are proposed.