Climate Change’s Growing Financial Impact on the U.S. Economy
JEC CHICAGO — “Since 1970, global temperatures have increased faster than in any other 50-year period in the last 2,000 years. Some parts of the globe, like the poles, are warming even faster,” (Sommer T 2021). As daunting as this problem of climate change seems, society is well aware of it, and we have been for quite a while. Though the dark result is unlikely to manifest in our time period, we are slowly beginning to feel the effects of how we’ve mistreated the planet. These effects have begun with our economy and specifically our infrastructure, the costs of climate disaster clean up, and the tourism industry. Let’s take a closer look at the threat climate change poses for the economy and how it’s already taking shape.
Natural Disaster Clean Up
“According to Morgan Stanley, climate disasters have cost North America $415 billion in the last three years,” (Cho 2019). Of these climate disasters, wildfires remain one the most catastrophic and it is an example of climate change taking effect right in front of our own eyes. California recorded that 2020 was the worst year of wildfires in their history (Meeks 2021). Furthermore, “More than half of the acres burned each year in the western United States can be attributed to climate change,” (Miller Mach Field 2020). 2020 was also the most active Atlantic hurricane season dated, with a record breaking 30 named storms and 13 hurricanes (Masters 2020).
As a result, 2020 was the sixth consecutive year in which the US had 10 or more billion dollar disasters (NOAA 2021). In 2020, our total disaster cost was 98.8 billion dollars. Compare that to 2000, when the cost was 13 billion, you can see how the intensification of our weather due to climate change is costing us more and more in damages. In the graph below, you can see that along with the number of disasters, the 5 year average cost of these disasters is steadily increasing, meaning the cost of climate change in the form of natural disasters is only growing.
Given the recent spike in natural disasters caused by climate change, the US economy has suffered greatly from the cleanup efforts that follow.
Tourism
These natural disasters aren’t just poking holes in the pockets of our cleanup budget either. “Tourism destinations in the tropics are projected to experience a decrease in visitor numbers due to more extreme temperatures and increases in the frequency and intensity of storms,” (Homes 2020). Hawaii, a popular destination for U.S. citizens seeking to get away from the continent but not the US, may be vulnerable to losing its popularity because of the rising sea levels. “Studies have shown that 70 percent of Hawaii’s coastline is already eroding,” (The Climate Reality Project 2020). This puts much of Hawaii’s tourism infrastructure at risk of serious damage. A big part of what drives people to Hawaii is the beautiful beaches and the many water-centric affairs. But recent studies show that access to some of these tourist magnets may be becoming scarce. “Surfers and vacationers alike depend on two paved lanes to reach the famous Pipeline and Waimea Bay breaks. Most of this coastal highway, in addition to the many other coastal roads in the state, will soon be underwater due to rising seas, storm surges and extreme flooding,” (The Climate Reality Project 2020). Therefore, climate change is also having a profound impact on the tourism sector of the economy.
Infrastructure
Recent light has been shed on the declining state of infrastructure in the United States. Though the problem can be attributed to the recent economic downturn in the US, climate change could be seen as the culprit as well. “Transport is also vulnerable, particularly due to so many facilities like roads and bus terminals being in flood zones, for instance, New Jersey Transit lost $120 million in damage to buses after Hurricane Sandy,” (Levinson 2019). The rising sea levels the author alludes to are costing coastal communities their means of daily transportation, and in the case of hurricane Sandy, many subway systems in New York were damaged (Low 2019), which is a huge cost for its countless dependent commuters.
Conclusion
So where does one even begin with minimizing climate change’s effect on the economy? A good place to start would be mitigating climate change itself by limiting carbon dioxide emissions. You can help by buying from utility companies that predominantly use renewable energy, investing in more energy-efficient appliances, and reducing the number of times you drive. Nonetheless, we would still have a long way to go in regards to mitigating the dangers that climate change poses for not only the economy but also human life. This June, residents in Texas had been asked to reduce the use of their AC because of the strain it was putting on their power plants (Douglas 2021). Consequently, a cascade of heat waves, resulting in many deaths (Schwartz 2021). With this new vulnerability in our power plants revealed, are we to expect that our power plants will not have the strength to withstand the effects of climate change? It’s not just our economy; it’s our lives at stake, and if we want a future for ourselves and the generations to come, we need to make changes now.
Works Cited
