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Climate Change Circular Flow Diagram
6
Climate Change Circular Flow
Business Firms
Meat based industries lose money because of less meat products being eaten and more death of livestock.
Payments for nonrenewable or renewable energy sources.
Business Firms
Rest of the World
Nations create policies that reduce the rate of climate change.
Treaties are made such as the Paris Agreement.
Payments for anti-climate change efforts
Households
Increased money expenditure for illness, and disaster recovery and precaution.
Payment for renewable energy sources such as solar panels.
Households
Government
Natural disasters increase government spending therefore increasing taxes
More jobs created for the aid and repair of climate change natural disasters.
Money is spent to fund climate change organizations and policies
Financial Market
Stocks in clean energy companies
Stocks in non-clean energy companies
Financial Market
Factor Market
Buying and selling of land for landfills, crude oil farms, wind-farms, and solar panel farms.
Innovation in the sector of renewable energy.
Factor Market
Product Market
Meat based products demand would dwindle
HVAC prices would increase
More demand for disaster recovery and aid products