Discussion on Reducing the Environmental Damage Caused by Climate Change with Innovative Thinking of Financial Management

Abstract

Due to the greenhouse effect caused by greenhouse gas emissions, the earth’s climate has changed, which has brought many types of environmental disasters. This study discusses the types of these environmental disasters and explores which financial instruments can be applied to reduce these environmental disasters. This study points out that abnormal climates, temperature rises, sea levels rise, and uneven rainfall distribution have led to intensified earth and rock flows and flood disasters, all of which are environmental disasters caused by climate change. The available financial instruments include environmental taxes, carbon trading, and catastrophe insurance. The implementation and effectiveness of these methods are also discussed in this study.