The Fourth National Climate Change Assessment has found that annual losses due to climate change could reach hundreds of billions of dollars, more than the output of some states.
The in-depth report covers climate change’s impact on communities, water, health and agriculture, to name a few. On the topic of climate change’s impact on the economy, the report states:
In the absence of significant global mitigation action and regional adaptation efforts, rising temperatures, sea level rise, and changes in extreme events are expected to increasingly disrupt and damage critical infrastructure and property, labor productivity, and the vitality of our communities.Regional economies and industries that depend on natural resources and favorable climate conditions, such as agriculture, tourism, and fisheries, are vulnerable to the growing impacts of climate change. Rising temperatures are projected to reduce the efficiency of power generation while increasing energy demands, resulting in higher electricity costs.
The impacts of climate change beyond our borders are expected to increasingly affect our trade and economy, including import and export prices and US businesses with overseas operations and supply chains. Some aspects of our economy may see slight near-term improvements in a modestly warmer world. However, the continued warming that is projected to occur without substantial and sustained reductions in global greenhouse gas emissions is expected to cause substantial net damage to the US economy throughout this century, especially in the absence of increased adaptation efforts.
With continued growth in emissions at historic rates, annual losses in some economic sectors are projected to reach hundreds of billions of dollars by the end of the century — more than the current gross domestic product (GDP) of many US states.
To reduce dangers associated to climate change, the report suggests leaders integrate climate risk into decision-making. It says “more immediate and substantial global greenhouse gas emissions reductions, as well as regional adaptation efforts” are needed to avoid the direst long-term consequences.
