Global warming is a market failure. It has so many externalities and effects that it is simply not possible for me to post it out here. Rather I'll post only the good(interesting) stuff - something that people don't think of when they think about global warming and its harmful effects. Global warming is creating an environment for the Taliban (widely perceived to be a terrorist group/movement just in case you live in a cave) to thrive in!
Firstly, global warming lengthen the period of droughts, especially in the middle east. Unfortunately, poppy plants (can be harvested to make heroin) is relatively drought resistant and more farmers are turning to farming poopy plants as they can survive droughts while other cash crops wilt in the sun and in the absence of water for extended periods of time. The increase in the no. of suppliers of poppy will increase the supply of heroin (rightward shift of supply curve), which results in the higher equilibrium quantity and therefore an increase in drug usage as well - more negative externalities eg. social problems!!
Moreover, this strengthens the Taliban as they tax heavily on the heroin trade. Since heroin is a drug which is addictive, the demand for heroin is price inelastic. This means that there will be a greater incidence of taxation on consumers, so consumers bear most of the tax. And also, Afghanistan almost has a monopoly of the heroin trade, supplying over 90% of the world's opium poppies by 2006. Which further means that the Taliban can raise the prices of heroin as much as they want since they are a monopoly and demand for heroin is inelastic. Therefore, the Taliban earned over USD 500 million from heroin trade in 2006 alone. THAT is a whole lot of AK-47 and rockets and money to recruit suicide bombers!
Furthermore, with worse droughts in the country, many Afghan farmers lose their entire crop and savings, hence they turn to the taliban for economic assistance by either 1.) joining their army(suicide squads and militias) or 2.) farm poppy plants for them. Obviously if the Taliban has more people under them, they would prove to be deadlier and stronger.
Finally global warming has caused the snow up in the mountains that surround several places in afghanistan to melt. Normally during winter, when the mountains are snow-capped, there is a lull in the fighting between the allied forces and the Taliban. However without the snow, Taliban fighters are able to cross mountain passages and smuggle weapons and troops through. Furthermore as US president Obama sent out more American troops to Afghanistan this year, they do not have sufficient time (as do normally do during winter) to set-up their defenses and be established. This would result in more Allied troops casualties and another victory for the Taliban.
In conclusion industries and nations around the world should cut down on their polluting of the air/ world. Because if not, all your multi-billion dollar profits would come to naught the moment the terroist gather enough strength and bomb their way to your factories!
my brain!
and valuable input from yingda! :D
Cheers!
Willie Wee
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