Jenna Ladd | July 3, 2017
Researchers figured the economic costs of climate-related impacts like rising sea levels, more extreme weather and higher temperatures. They ran many simulations which calculated the potential costs and benefits of each phenomenon for a variety of industries and business sectors. They figured that on average, the U.S. will lose roughly 0.7 percent gross domestic product (GDP) per 1 degree Fahrenheit increase in global temperatures. This economic burden, however, will not be shared equally by all parts of the country.
The poorest counties in the U.S., which are mostly in the South and southern Midwest, are likely to suffer the most intense economic downturn, with some counties expected to lose more than 20 percent of their gross county product.
Solomon Hsiang is a professor of public policy at the University of California at Berkeley and one of the study’s authors. In an interview with the Washington Post, he said, “What we’re seeing here is that climate change will have a very large impact on the quality of life and economic opportunity in the coming decades for ourselves and our children.”
The Northern and Western U.S. are likely to experience fewer economic consequences. Some areas may benefit from the changing climate where higher temperatures mean longer farming seasons and lower energy costs. Hsiang said, “The poor regions will get poorer and the richer regions will benefit.”
Iowa will likely fall in line with projections for the Midwest. Researchers warned that agricultural markets could see economic devastation similar to that experienced during the Dust Bowl.
At present, the wealthiest 1 percent of Americans earn about 20 percent of all U.S. income. The researchers warn that climate change may further widen this earning gap. The report reads, “Combining impacts across sectors reveals that warming causes a net transfer of value from Southern, Central and Mid-Atlantic regions toward the Pacific Northwest, the Great Lakes region, and New England. … [B]ecause losses are largest in regions that are already poorer on average, climate change tends to increase preexisting inequality in the United States.”