The economic impact of the relentless heatwave scorching much of southern Europe, the United States and the Northern Hemisphere will be short-lived in most areas as tourist destinations are temporarily closed, outdoor dining is abandoned, and electricity increases. may end. Use in air conditioning.
In the long term, however, the economic impacts of climate change are likely to be severe.
Devastating fires, floods and droughts tend to dominate the headlines. Other insidious effects may get less attention, but still do more damage. Researchers have found that extreme temperatures reduce labor productivity, damage crops, increase mortality, disrupt global trade and deter investment.
Ann analysis In Europe, France, Italy, Spain, Romania and Germany have been hit hardest by climate-related disasters in the last two decades, according to researchers associated with the Center for Economic Policy Research. However, Central and Eastern European countries are increasingly suffering from climate problems.
Governments are being called upon to replace damaged infrastructure and provide subsidies and relief measures, and such developments put further pressure on public spending. The analysis notes that if climate change disrupts economic activity, tax revenues may also decline.
Although economic losses related to climate change are expected to increase significantly in the future, according to European Union estimates, the European Union: no mechanism In most Member States it is intended to collect and assess economic costs.
Barclays analyst Estimate Over the past half century, the cost of each climate-related disaster has increased by nearly 77%.
Worldwide losses will grow.one study A paper published last year that aimed to measure the impact of human-induced heat waves on global economic growth estimated cumulative losses from 1992 to 2013 of $5 trillion to $29.3 trillion worldwide. concluded that it had reached
Poorer countries in hotter climates were hit the hardest. “Lower incomes will make tropical economies less adaptable to increasing heat waves,” the study says.
