(LONDON) – An authoritative study suggests that the US people might have to bear a far greater economic cost of climate change than one can expect.
The study was authorized by the Risky Business Project, a research corporation headed by a bi-partisan panel and backed by many former Treasury Secretaries of US.
It expects climate change to have varied impacts across different regions and industries. Rising sea levels, it says, could destroy many billion dollars’ worth of coastal properties by 2050, and warming temperatures, especially in the south, south-west and mid-west, could cut the productivity of people working outdoors by 3%.
Without a change in crops, harvests in these regions could fall by 14%. But further north, in states such as North Dakota and Montana, winter temperatures will probably rise, reducing frost and cold-related deaths and lengthening the growing season for some crops. Kate Gordon, executive director of the Risky Business Project, said : “We still live in a single integrated national economy, so just because it’s not hot where you are doesn’t mean you won’t feel the heat of climate change.” Michael Bloomberg, a former mayor of New York, said: “Damages from storms, flooding, and heat waves are already costing local economies billions of dollars. We saw that firsthand in New York City with Hurricane Sandy.
Costs of inaction
“With the oceans rising and the climate changing, the Risky Business report details the costs of inaction in ways that are easy to understand in dollars and cents – and impossible to ignore.”
Hank Paulson, a former Treasury Secretary and co-chair of the Risky Business Project, said the report shows us that “our economy is vulnerable to an overwhelming number of risks from climate change. “But if we act immediately, we can still avoid most of the worst impacts of climate change and significantly reduce the odds of catastrophic outcomes. But the investments we’re making today will determine our economic future.” In a section on short-term climate threats, the authors say: “The American economy is already beginning to feel the effects of climate change. These impacts will likely grow materially over the next 5 to 25 years”.
“Just because it’s not hot where you are doesn’t mean you won’t feel the heat of climate change” They say there is a 1-in-20 chance of yield losses of more than 20% in corn, wheat, soya and cotton crops over that timespan.
On energy, they say changes in temperature driven by greenhouse gases will probably mean a need to build roughly 200 average coal-fired or natural gas-fired power plants between 2020 and 2045, costing up to $12 billion per year. Climate impacts, the report says, are unusual because future risks are directly tied to present decisions. By failing to lower greenhouse gas emissions today, decision-makers put in place processes that increase overall risks tomorrow. By 2050, on present trends, USD 66 – 106 billion worth of existing coastal property will probably be below sea level nationwide, with USD 238 – 507 billion worth by 2100.
By mid-century, the average American will probably see 27 to 50 days over 95°F (35°C) each year – two to more than three times the average annual number of such days seen over the last 30 years. By the end of the century, this number will probably average 45 to 96 days over 95°F each year. But the study says that the south-west, south-east, and upper mid-west will probably see several months of 95°F days annually.
In the longer term, extreme heat during parts of the year could pass the threshold at which the human body can no longer maintain a normal core temperature without air conditioning. At these times, anyone who has to work outdoors, or without access to air conditioning, will face severe health risks and possible death. The authors say they hope it will become standard practice for the American business and investment community to factor climate change into its decision-making process. They say: “We are already seeing this response from the agricultural and national security sectors; we are starting to see it from the bond markets and utilities as well.
“But business still tends to respond only to the extent that these risks intersect with core short-term financial and planning decisions.”
The authors notify the government saying, “We also know that the private sector does not operate in a vacuum, and that the economy runs most smoothly when government sets a consistent policy and a regulatory framework within which business has the freedom to operate.”