The 2009 View: Globalization may be Thwarted as a Result of Climate Change and Diminished Oil Supply

by Margaret Loncki

Just how devastating are the potential effects of both global warming and peak oil on global trade? Fred Curtis, professor of economics and environmental studies at Drew University, explains that the effects are potentially disastrous. Curtis points out the four main characteristics of climate change are capable of undermining global trade: increased temperature, rising sea levels, increased precipitation, and increased hurricane severity. Curtis also explores how peak oil will play a role in global trade. Peak oil, a point at which maximum oil output is reached, will result in an increased gap between oil demand and oil supply leading to increased oil prices. Increased gas prices lead to less cost-effective shipping, and therefore, discouraged international trade. Curtis concludes that current climate change policy is too insignificant and will be unable to mitigate the effects of decreased international trade. Continue reading