The economic impact of the brutal heat wave that has scorched southern Europe, the United States and much of the Northern Hemisphere may be short-lived in most places, with tourist sites temporarily closed, outdoor dining abandoned and power outages extended. Uses related to conditioning.
But in the longer term, the economic impact caused by climate change is likely to be profound.
Destructive fires, floods and droughts dominate the headlines. Other deleterious effects may attract less attention but still have an impact. Researchers have found that extreme temperatures reduce labor productivity, damage crops, increase mortality, disrupt global trade and reduce investment.
One Analysis Researchers from the Center for Economic Policy Research found that in Europe, France, Italy, Spain, Romania and Germany have been hit hardest by climate-related disasters over the past 20 years. However, Central and Eastern European countries are increasingly affected by climate-related problems.
Such developments put additional pressure on public spending, as governments are called upon to replace damaged infrastructure and provide subsidies and relief. The analysis says that when climate change disrupts economic activity, tax revenues may also be lower.
According to EU estimates, economic losses related to climate change are expected to increase significantly in the future, although it has been noted that no system To collect and assess the economic cost in most member states.
Barclays Analyst estimated The cost of each climate-related disaster has increased by about 77 percent over the past half century.
Globally, the deficit will be widespread. One Study A report published last year that sought to measure the impact of human-caused heat waves on global economic growth concluded that cumulative losses globally between 1992 and 2013 reached between $5 trillion and $29.3 trillion. Went.
Poor countries with hot climates suffered the most. “Low income makes tropical economies less able to adapt to increases in extreme heat,” the study said.
