The Intersection of Climate Change and Inflation: Implications for Policy and Economic Stability
Winter storms, extensive flooding, and wildfires disrupt supply chains and raise prices across industries.
Image by Pok Rie
In a thought-provoking article published on TIME's climate policy section, Justin Worland, an award-winning senior correspondent, explores the connection between climate change and inflation. With his expertise in climate journalism and recognition as the recipient of Covering Climate Now's inaugural Climate Journalist of the Year award in 2022, Worland delves into the complex relationship between climate-linked extreme weather events and rising inflation. Worland examines how disasters, such as winter storms in Texas and wildfires in California, impact supply chains, leading to shortages and price increases across various industries that ultimately drive up prices for consumers. Additionally, he delves into the inflationary effects of climate policies and regulations aimed at transitioning away from carbon-intensive practices. By raising essential questions about the role of governments, central banks, and mitigation policies, Worland highlights the need for an orderly transition to address climate change. Worland proposes educating consumers on increased prices so they can budget accordingly while ensuring economic stability; otherwise, countries like the U.S. will face consumer backlash in the short term policy implementation as a disorderly transition hits their hip pocket.
