The impact of US leaving the Paris Climate Accord is analysed in tangible terms along with intangible terms in this analysis. In the equation δ = ρ + gη, ρ is assumed as a variable that is used to depict the action of a social planner. America leaving the Paris Agreement was based on goodwill. The impact of US leaving the Paris Agreement is considered to be an action that would add to the global warning. This would cause substantial increase in the δ value. Currently, the critical 2-degree Celsius threshold is expected to reach earlier than 2060. This is done to prevent the doomsday damage by 50 years or later. US President had decided to leave the Paris accord citing the fact that the terms were unfair. The CEO’s of the country such as Exxon, GE, have stated that they would adhere to the protocols irrespective of the policy of the government. This is expected to mitigate the risks.
When US stated that they would come out of the agreement, it was dismantling of the Clean Power plan to reduce the Carbon emissions. The nation stated that they would not make any additional contributions to the United Nations. This sets a precedent for other nations. Some of the proponents of the President actions states that these risks are hypothetical and asks the people not to be worried about future. This is different from the scientific assessment report on the climate change that is done from the UN. Extreme weather events would likely cause colossal property damage, people livelihood, life and loss of businesses would result. The efforts of the rich nation would impact the emerging nations from acting on the growth of the policy. The development of the sustainable way of life would be impacted in the process. The UN sustainable goals will not be reached.