The economic impact of cruel heat wave scorching Southern Europe, the United States and much of the Northern Hemisphere are likely to be short-lived in most spots, with temporary closures of tourist sites, the abandonment of outdoor dining and increased use of food. electricity related to air conditioning.
But in the long run, the economic consequences of climate change are likely to be severe.
Devastating fires, floods and droughts tend to dominate the headlines. Other insidious effects may generate less attention but come at a cost nonetheless. Researchers have found that extreme temperatures reduce labor productivity, destroy crops, increase mortality, disrupt global trade and reduce investment.
ONE Analysis by researchers affiliated with the Center for Economic Policy Research have found that in Europe, France, Italy, Spain, Romania and Germany have been hardest hit by disasters related to climate over the past 20 years. However, the countries of Central and Eastern Europe are increasingly facing climate problems.
Such developments put further pressure on public spending, as governments are called upon to replace damaged infrastructure and provide subsidies and relief. The analysis notes that tax revenue could also fall as climate change disrupts economic activity.
Economic losses related to climate change are expected to increase significantly in the future, according to estimates from the European Union, although they note that there are no mechanism in most member states to collect and evaluate economic costs.
Analysts at Barclays estimate that the cost of each climate-related disaster has increased by nearly 77 percent over the past half-century.
Globally, losses will widen. One learn published last year to measure the impact of anthropogenic heatwaves on global economic growth concluded that cumulative losses from 1992 to 2013 amounted to between $5 trillion and $29, $3 trillion globally.
Poor countries in hotter climates suffer the most. “Lower incomes make tropical economies less able to adapt to an increase in extreme temperatures,” the study said.
