Climate Change and Its Implications for the Sustainability of Economic Activities

Abstract

This study examines the implications of climate change for the sustainability of economic activities by integrating climate risk theory and vulnerability frameworks within a comprehensive analytical approach. Using secondary data derived from internationally recognized sources, including climate vulnerability indices, disaster databases, and macroeconomic indicators, the study analyzes how climate-related hazards, exposure, sensitivity, and adaptive capacity interact to influence economic sustainability. The findings indicate that climate change affects economic activities not only through direct physical shocks but also through cumulative structural pressures that disrupt productivity, weaken resilience, and constrain long-term development pathways. Economies with high exposure and sensitivity experience persistent economic disadvantage when adaptive capacity is limited, whereas strong institutional readiness and governance significantly mitigate climate-related risks. By conceptualizing sustainability as a dynamic process shaped by ongoing climate pressures and adaptive responses, this study contributes original insights to the climate–economy literature. The results highlight the critical role of adaptive capacity as a core mechanism for sustaining economic activities under increasing climate uncertainty.