Economic Impacts

Multitudes of studies have determined that the net damage costs of climate change are likely to be significant and will increase over time (IPCC, 2014). As such, climate impacts will have both immediate and long-lasting impacts on the flow of goods and services through the community in Windsor. Changes to the production, price, and demand for goods and services can have an adverse effect on the local economy, and produce economic losses as have already been experienced in the community. Local businesses may experience operational losses, business continuity issues, and disruptions to essential services (e.g. power, telecommunications) which are relied upon to deliver products and services. Climate change is also impacting several local revenue sources such as energy, tourism, recreation, freshwater fisheries and transportation, generating losses that are likely to be felt within the short and medium term (Warren and Egginton, 2008). The economic and recreational benefits of seasonal amenities such as outdoor skating rinks and marinas are already challenged by rising temperatures and an increase in extreme weather. Residents will also be impacted as insurance premiums rise and potential damage to properties increases as a result of extreme weather events.

It is important to understand the impacts of climate change on the local economy in order to build awareness and engagement from the business community and to enhance resilience within local economic sectors. While there may be certain opportunities that could arise, particularly in tourism related industries, it is important to proactively plan for the impacts (and opportunities) of climate change. To enable action, governments and business alike must embed adaptation within existing risk-management mechanisms and processes and work collectively to improve the adaptive capacity of the local economic sectors in Windsor (NRTEE, 2012).