What’s the Arctic Worth?

Key takeaways

• A 2017 study from Tanya O’Garra estimated that the Arctic provides approximately $281 billion per year (2016 USD) from its various resources
• Climate regulation (e.g. carbon storage) is by far the Arctic’s most valuable asset

Things to note

• All of these values are preliminary, and are intended to offer a framework for future research and policy
• Given the large variation in production costs for mining, it was assumed that 50% of mining revenue comprises costs

How will climate change impact the Arctic’s value?

Global warming is expected to have varied effects on the value provided by the Arctic. 

For example, retreating sea-ice could open up new shipping routes, fishing grounds, and areas for mineral exploration. 

On the flipside, increasing resource extraction from the Arctic could also lead to more environmental disasters (e.g. pipeline leaks) and pollution.