You are correct! It’s called positive feedback. According to NASA: http://www.nasa.gov/topics/earth/features/vapor_warming.html, CO2 also leads to a temperature increase (despite absorbing much less radiation), and this leads to water evaporation, which leads to more of a temperature increase as well.
So – CO2 does have an effect, and it also affects this water loop. I’ve always found this funny, to be honest, as it seems like CO2 absorbs very little compared to water. If NASA says so, it’s likely accurate, however.
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