Climate change, also known as global warming is one of the worlds largest problems at the moment. Not politics, not Brexit, not Trump’s latest twitter post, but climate change!!
We fail to realise how serious the situation is, we’re facing the biggest environmental challenge our species has ever seen. The IPCC (Intergovernmental Panel on Climate Change) informed us on a previously written post that climate impacts are at the current degree of 1-degree Celsius, with huge risks of it reaching 1.5 degrees, and irreversible losses that will take place if temperatures rise to 2 degrees Celsius and warming.
In financial studies, it’s been proven that a positive environmental atmosphere, such as sunshine, warm temperatures, and daylight are often used as proxies for peoples collective mood swings, and been tested on the stock market. Recently China experienced serious air pollution problems and since then, public awareness of pollution has really soared.
All over the world cities are wrestling against apocalyptic air pollution, but it seems that Mongolia is suffering the most, with the problem linking directly to climate change. BBC news reporter headed over to Ulaanbaatar (Capital of Mongolia) herself to take a look at the damage. During her visit in the winter, she visits locals and finds out how they’re suffering directly. With no snow this year, and an overload of snow last year, a local informs the reporter that they fear a lot of the cattle will die, as they stand and look over the corpses of the lost cattle from the snowstorm last year. The animals were not eating enough during the summer to last them through the winter, many simply couldn’t survive.
This year Mongolia suffered a different change however, their past summer (2018) there was an obscene amount of flooding, and are currently experiencing a winter dry as ever.
It’s not only in Mongolia that people are suffering, rather we’re seeing reports informing that in the UK itself, more children suffer from respiratory conditions than anywhere else in the in Europe, with a new report claiming one in three British children live in areas with a high level of pollution.
A mother living in Bristol has taught her children to cover their mouths with a scarf or any cloth, to help filter through the bad air in the streets when outdoors. Her daughter has suffered severe chest infections and bugs in the past couple years, as well as her son, who has been getting seizures since the age of 3, holding strong believes that it’s connected to the air pollution.
Universities have been studying the performance of traders when sitting in lower air quality environments and have come to a simple conclusion: Air pollution brings down the stock market.
Professor Heyes of Harvard Business study says:
“The effect was strong. Every time air quality decreased by one standard deviation, we saw a 12% reduction in stock returns. Or to put it in other terms, if you ordered 100 trading days in New York from the cleanest-air day to the dirtiest-air day, the S&P 500 performance would be 15% worse on the 75th cleanest day than it was on the 25th cleanest day. We also replicated this analysis using data from the New York Stock Exchange and Nasdaq, and saw the same effect.”