The direct implication of extreme weather changes regards the adverse effects on the socio-economic sector (Nkemelang et al., 2018). As prolonged droughts and rainfall periods are experienced in different countries, this is anticipated to affect the livelihoods of the population in diverse ways, for instance, increased rainfall is likely to lead to flooding and displacement of people (Raj and Singh, 2012). Tol (2018) has, however, argued that the economic effects of global warming are likely to be felt in the long-run and mainly in poorer developing countries which lack the technological capacity to monitor extreme climates. As a result, a higher percentage of the population is likely to be impoverished as the extreme weather leads to drought and loss of livelihood through the destruction of agriculture.
The third effect of global warming; melting of ice caps; and rising sea levels; is also anticipated to negatively impact the socio-economic sector (Farmer and Cook, 2012). The researchers report that increasing global temperatures have been leading to a rise in sea levels following the melting of ice caps and glaciers by about 148 billion tons from 2003 to 2010. Increasing sea temperatures and rising sea levels are anticipated to negatively affect industries such as fishing, as fish move to the colder regions of the ocean, resulting in a loss of revenue in the sector. Likewise, rising sea levels are also anticipated to adversely affect the tourism sector, as coasts and beaches are eroded over time. However, as argued by Tol (2018), the economic impact of global warming is likely to be felt over a long-run period.