What are some potential economic impacts of climate change?

Higher costs for disaster recovery represent a significant potential economic impact of climate change due to the increased frequency and severity of extreme weather events such as hurricanes, floods, and droughts. As the climate continues to change, regions that were previously less affected by such disasters may experience new risks, leading to higher expenditures for emergency responses, rebuilding infrastructure, and providing aid to affected communities. There may also be additional costs related to adapting infrastructure to withstand new environmental conditions, which can further strain local and national budgets.

In contrast, other choices imply positive or neutral effects. Increased recreational island activities may be a benefit in some regions but does not reflect a broad economic impact of climate change. Stabilization of agricultural productivity is unlikely in the face of changing climate variables, which typically leads to crop variability and increased uncertainty for farmers. Lastly, lower costs in infrastructural maintenance contradict the reality of climate change effects, as infrastructure often requires upgrades and repairs to cope with new challenges posed by the shifting environment. Therefore, the economic implications of climate change primarily include increased costs rather than financial relief.