Threats to World Economics

This is an interesting conceptual map of risks to the world economy. Biodiversity loss is included, though I bet a lot of conservation biologists would disagree with the missing links. Biodiversity could certainly be used as an investment in infrastructure (ecotourism, ecosystem services), preventing food price volatility, transnational crime and corruption and international terrorism (Somali pirates), and how on earth did they leave out Pandemics? The really interesting thing, though is their plot of likelihood and severity. Biodiversity loss is about midrange in the likelihood scale, but fourth-lowest on the severity scale. Meanwhile, asset price collapse is listed as the highest likelihood and highest severity. It’s an fascinating view on how economists think about biodiversity loss.

Posted by Tim on March 24th, 2010 • • 2 comments
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2 Responses to 'Threats to World Economics'

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  1. Driftwood said, on March 25th, 2010 at 5:15 am

    They must have read your post – pandemics is in the chart now :)

    Thanks for pointing this out. It’s an interesting model, although I’m not sure what conclusion to draw, other than the idea that the world is a scary place.

    The links ought to be directional. I can understand that air pollution causes chronic disease, I have trouble with chronic disease causing air pollution.

    Note that the circle is labeled “burden of regulation”. That seems to indicate a particular viewpoint. In India, the burden of regulation might be correct, on Wall Street, perhaps, it should be “lack of regulation”.

  2. Tim said, on March 25th, 2010 at 11:41 pm

    Oh yes, I’d agree this indicates a particular viewpoint! I’m just interested to see that they’re sort of paying attention to biodiversity, but clearly know about as much about it as I do about economics..