The economic impact of the brutal heat wave sweeping through southern Europe, the United States and much of the Northern Hemisphere may be short-lived in most regions, with temporary closures of tourist sites, abandonment of outdoor dining, and increased electricity. Air conditioning use.
But in the long term, the economic fallout from climate change is likely to be profound.
Destructive fires, floods and droughts tend to dominate the headlines. Other malicious effects might generate less interest but nonetheless have a negative impact. Researchers have found that extreme temperatures reduce labor productivity, damage crops, raise mortality rates, disrupt global trade and discourage investment.
that analysis Researchers associated with the Center for Economic Policy Research found that Europe, France, Italy, Spain, Romania and Germany have been hardest hit by climate-related disasters over the past 20 years. However, the countries of Central and Eastern Europe are increasingly experiencing climate problems.
Such developments have put additional pressure on public spending, as governments are required to replace damaged infrastructure and provide subsidies and relief. The analysis suggests that tax revenues can also shrink when weather changes disrupt economic activity.
Economic losses related to climate change are expected to increase significantly in the future, according to estimates by the European Union, although it indicated that there are no mechanism In most member states to collect and evaluate economic costs.
Analysts at Barclays estimated The cost of each climate-related disaster has increased by approximately 77% over the past half century.
Globally, the losses will widen. One Stady A publication last year that sought to measure the impact of human-caused heat waves on global economic growth concluded that the cumulative loss between 1992 and 2013 amounted to between $5 trillion and $29.3 trillion globally.
Poor countries in hot climates have suffered the most. “Low income makes tropical economies less able to adapt to increases in temperature extremes,” the study said.