The natural environment affects every aspect of our economy and of our daily lives. From the production of food to the sale of insurance, the climate is an important determinant of the costs of goods and services. As climate change increases, so too will the cost of living. And those already financially vulnerable stand to be worst affected. The issues highlighted here are addressed in other pages of this website, however it is useful to consider all the aspects of climate change impacts on Australian society as these experiences will not occur in a vaccum, but influence each other.

For example, Richard Dennis predicts that higher temperatures and increased intensity of storms will lead to:

• More expensive insurance
• Increased energy demand and electricity costs, espcially air conditioners
• Greater health costs due to the southern, with spread of tropical and water borne diseases
• Increased public spending on infrastructure

The farming, tourism and employment pages also outlines implications of climate change on these economic major sectors, with an overall implication that national sources of revenue and resources will be affected. The consequences for some will be fairly straight forward - less disposal income, less economic autonomy.

In Australia - the world's driest habitable continent - agriculture stands to be severely affected by a hotter and more turbulent climate. Global temperatures are predicted to rise 1.4ºC to 5.8ºC by 2100, according to the Intergovernmental Panel on Climate Change (IPCC). Across much of Australia, this translates to higher temperatures, stronger storms, longer droughts and faster evaporation of stored water. Production costs, including insurance, are likely to rise while yields diminish.

See also: Farming and Rural Communities

As Cyclone Larry's destruction of North Queensland banana crops demonstrated in 2006, extreme weather events and adverse climatic conditions can affect the availability and cost of fresh food. ABS data points to adverse weather as a factor contributing to the rising price of fresh food. In 2005, poor weather and higher fuel costs drove up the prices of potatoes, broccoli, onions and tomatoes, as well as a variety of fruit. Overall, the price of vegetables rose 6.8% and fruit rose 5.8%, contributing to a total increase in food costs of 3.6% over the year to December 2005.

Higher fresh food costs will primarily affect vulnerable, low-income communities. There is increasing concern that low income people will be unable to afford healthy food, and will rely instead on low quality, processed foods that contribute to health problems such as childhood obesity. The Cancer Council of Victoria raised their concern about increasing rates of these "lifestyle" diseases in 2004 indicating the need to address this health issue on at a societal level.

See also: Health

Household transport costs may also rise. Because private cars are a significant source of greenhouse gas emissions, preventing damaging climate change will require that Australians drive less often, and for shorter distances. Even without policy action, rising oil and energy prices will make driving more expensive. Unless sustainable infrastructure is planned now for Australia's outer suburbs, those who already have few transport choices will face the greatest adjustment hardship. They will also remain disproportionately exposed to the health impacts of vehicle dependence, such as accident trauma, obesity and cardiopulmonary disease.

See also: Planning

As well as increasing the cost of living, climate change is also the cost of our living - the highly consumptive, fossil-fuel intensive lifestyles of Australians that make us the second highest per capita greenhouse gas polluters in the world. By moving quickly to reduce emissions, Australians can avoid the worst impacts on those least able to afford them.