Climate change risks grow faster for wealthy, poorest remain at risk: Study

Economic risks for the wealthy due to climate change is growing at the fastest rates because of impacts to global supply chains and goods and services, even as the highest risks remain with the poorest around the world, according to a new study. Across countries, lower-income consumers are known to face higher economic risks in a changing climate because of a low capacity to adapt. However, researchers explained that inequality in consumption between varied income groups within a country is grounded in how easily one is able to substitute goods to adapt to the effects of climate change, including shocks to supply chains. The team from the Potsdam Institute for Climate Impact Research (PIK), Germany found that low-income consumers are more vulnerable to supply shocks as they spend a greater share of their budget on hard-to-substitute necessary goods. On the other hand, high-income consumers spent larger shares of their budget on easier-to-substitute goods so that they suffer smaller