section_path: Economic impacts of climate change
section_name: Economic impacts of climate change
paragraph_text: Economic impacts of climate change
  
  According to the Government, the number of households in flood risk will be up to 970,000 homes in the 2020s, up from around 370,000 in January 2012. The effects of flooding and managing flood risk cost the country about £2.2bn a year, compared with the less than £1bn spent on flood protection and management. UK agriculture is also being affected by drought and weather changes.
  
  In 2020 PricewaterhouseCoopers estimated that Storm Dennis damage to homes, businesses and cars could be between £175m and £225m and Storm Ciara cost up to £200m. Friends of the Earth criticised British government of the intended cuts to flood defence spending. The protection against increasing flood risk as a result of climate change requires rising investment. In 2009, the Environment Agency calculated that the UK needs to be spending £20m more compared to 2010 to 2011 as the baseline, each and every year out to 2035, just to keep pace with climate change.
  
  The British government and the economist Nicholas Stern published the Stern Review on the Economics of Climate Change in 2006. The report states that climate change is the greatest and widest-ranging market failure ever seen, presenting a unique challenge for economics. The Review provides prescriptions including environmental taxes to minimise economic and social disruptions. The Stern Review's main conclusion is that the benefits of strong, early action on climate change far outweigh the costs of not acting. The Review points to the potential effects of climate change on water resources, food production, health, and the environment. According to the Review, without action, the overall costs of climate change will be equivalent to losing at least 5% of global gross domestic product (GDP) each year, now and forever. Including a wider range of risks and costs could increase this to 20% of GDP or more. The review leads to a simple conclusion: the benefits of strong, early action considerably outweigh the costs.
  
  According to the Government, the number of households in flood risk will be up to 970,000 homes in the 2020s, up from around 370,000 in January 2012. The effects of flooding and managing flood risk cost the country about £2.2bn a year, compared with the less than £1bn spent on flood protection and management. UK agriculture is also being affected by drought and weather changes.
  
  In 2020 PricewaterhouseCoopers estimated that Storm Dennis damage to homes, businesses and cars could be between £175m and £225m and Storm Ciara cost up to £200m. Friends of the Earth criticised British government of the intended cuts to flood defence spending. The protection against increasing flood risk as a result of climate change requires rising investment. In 2009, the Environment Agency calculated that the UK needs to be spending £20m more compared to 2010 to 2011 as the baseline, each and every year out to 2035, just to keep pace with climate change.
  
  The British government and the economist Nicholas Stern published the Stern Review on the Economics of Climate Change in 2006. The report states that climate change is the greatest and widest-ranging market failure ever seen, presenting a unique challenge for economics. The Review provides prescriptions including environmental taxes to minimise economic and social disruptions. The Stern Review's main conclusion is that the benefits of strong, early action on climate change far outweigh the costs of not acting. The Review points to the potential effects of climate change on water resources, food production, health, and the environment. According to the Review, without action, the overall costs of climate change will be equivalent to losing at least 5% of global gross domestic product (GDP) each year, now and forever. Including a wider range of risks and costs could increase this to 20% of GDP or more. The review leads to a simple conclusion: the benefits of strong, early action considerably outweigh the costs.
  
  According to the Government, the number of households in flood risk will be up to 970,000 homes in the 2020s, up from around 370,000 in January 2012. The effects of flooding and managing flood risk cost the country about £2.2bn a year, compared with the less than £1bn spent on flood protection and management. UK agriculture is also being affected by drought and weather changes.
  
  In 2020 PricewaterhouseCoopers estimated that Storm Dennis damage to homes, businesses and cars could be between £175m and £225m and Storm Ciara cost up to £200m. Friends of the Earth criticised British government of the intended cuts to flood defence spending. The protection against increasing flood risk as a result of climate change requires rising investment. In 2009, the Environment Agency calculated that the UK needs to be spending £20m more compared to 2010 to 2011 as the baseline, each and every year out to 2035, just to keep pace with climate change.
  
  The British government and the economist Nicholas Stern published the Stern Review on the Economics of Climate Change in 2006. The report states that climate change is the greatest and widest-ranging market failure ever seen, presenting a unique challenge for economics. The Review provides prescriptions including environmental taxes to minimise economic and social disruptions. The Stern Review's main conclusion is that the benefits of strong, early action on climate change far outweigh the costs of not acting. The Review points to the potential effects of climate change on water resources, food production, health, and the environment. According to the Review, without action, the overall costs of climate change will be equivalent to losing at least 5% of global gross domestic product (GDP) each year, now and forever. Including a wider range of risks and costs could increase this to 20% of GDP or more. The review leads to a simple conclusion: the benefits of strong, early action considerably outweigh the costs.