“The price of inaction is far greater than the cost of making a mistake.”
Meister Eckhart
The Fifth National Climate Assessment just landed. Every four years, this congressionally-mandated report gives an in-depth assessment of the impacts and risks of climate change. What’s new this time is they added a section on the economics of climate change (hint – it’s expensive).
The economics of climate change
Just how expensive? In the United States, we have an extreme weather event costing over $1 billion dollars every three weeks! Let that sink in for a second. Compare that to the 1980s, when we had one every 4 months (adjusted for inflation). And things will continue to get worse unless we get more serious about reducing heat-trapping emissions. The upside is, the benefits of making these changes outweigh the costs.
There are both direct and indirect costs to climate change. For example, direct costs of more severe storms include damage to homes and businesses, while indirect costs will be dropping home values and soaring insurance costs in storm-prone regions. Climate impacts will be spread unevenly, but every single individual and organization will be hit with the economic burden of a warmer planet. In fact, people in every county of the US are already paying up.
The financial case for fixing the climate is becoming more clear. The graphic below illustrates how climate change increases demand for government resources, while at the same time, reducing our government’s ability to fund them. There will be corresponding market impacts.
What can we do?
Advocating for large-scale change is how we can make the biggest impact. At the same time, simple changes we make on our own can not only help reduce harmful emissions, but also improve our own economic situation. Some examples:
- Use less energy at home
- When replacing appliances and vehicles, consider electric options
- Prepare for climate-related risks to our homes and property
The key takeaway: transitioning quickly from fossil fuels to clean energy not only protects our future, but makes economic sense.
Let’s do something about climate change. Learn about it. Think about it. Talk about it.