Economic Outcomes of Emerging Pandemics and Their Implications for the Environment

Pandemics often directly affect the surroundings or conditions in which a person, animal, or plant lives or operates; airborne or respiratory-related pandemics such as severe acute respiratory syndrome (SARS) and COVID-19 have significantly restricted the movement of persons and goods across the globe. The economic outcomes of pandemics are generally numerous and far-reaching. Based on their global scale and duration, the economic consequences, in turn, have environmental implications that are worth noting. On the one hand, the economic implications primarily manifest as demand and supply chain obstructions that affect prices, profit margins, jobs and the economy at large, and the opportunity cost of diverting public funds to address pandemic emergencies by the government. This chapter seeks to analyse the direct economic implications of the effects of pandemics on the environment by examining their impact on economic growth and financial flows, global value chains, information and communication technology (ICT) development, tourism and travel, as well as the opportunity cost of the fight against climate change. The chapter adds a refreshing perspective on the economic realities of emerging pandemics.