Climate Change and Its Detrimental Effects on Bhutan Economy: An Urgent Call for Policy Action

Sukanta Sarkar

Journal of Global Economy, 2025, vol. 21, issue 2, 99-111

Abstract: The paper discussed the detrimental effects of climate change on economy of Bhutan. It has been found that flood, droughts and landslides are likely to be increasingly routine concerns for economy of Bhutan. Malaria, dengue and water-borne diseases like diarrhoea are marching higher into the Himalayan foothills as temperatures rise. The retreat of Bhutan’s glaciers presents an even more formidable and fundamental challenge to nearly 80 percent people of Bhutan who lives by farming. Weather events such as heavy rains can cause floods and landslides, while weather events such as storms, cyclones and droughts can damage agriculture, affecting the livelihoods of many people. Most farmers in Bhutan depend on the monsoon for irrigation. Late arrival of the monsoon can cause droughts, while excessive rainfall can cause natural disasters such as floods. Climate change impacts filter down to men and women, and ultimately impact more profoundly on rural women, who depend on their environment for their livelihood. As Bhutan is heavily dependent on the hydropower and tourism sector, and reports show that the sector is vulnerable, there is a necessity for major adaptation measures in the sector. Employment, income, economic growth, and gross domestic product of Bhutan will directly and indirectly affect by the climate change. Therefore, there should be the national and international efforts for mitigating such challenges.

Keywords: Climate Change; flood; natural calamities; Global warming (search for similar items in EconPapers)
JEL-codes: O13 Q54 Q58 (search for similar items in EconPapers)
Date: 2025
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