The Economic Impacts of Climate Change in the U.S. A recent study conducted by the Center for Integrative Environmental Research finds that economic costs will be far-reaching and affect all geographic areas of the nation if nothing is done. The CIER research finds that the impact of climate change events will affect both the natural environment and existing infrastructure Their report reviews several economic studies… And relates these to several predicted climate change impacts. Source: Matthias Ruth, Dana Coelho, and Daria Karetnikov. A Review and Assessment by the Center for Integrative Environmental Research (CIER) at the University of Maryland, October 2007. Center for Integrative Environmental Research, University of Maryland.

Impacts in the U.S. Effects experienced across all regions, but the severity will be “unevenly distributed across regions and within the economy and society.1” It is estimated that for sectors of the economy that provide essential goods and services, the negative effects will be significantly greater than the positive. The impact of climate change will severely strain government budgets – local, state and federal. 1Matthias Ruth, Dana Coelho, and Daria Karetnikov. A Review and Assessment by the Center for Integrative Environmental Research (CIER) at the University of Maryland, October 2007. Center for Integrative Environmental Research, University of Maryland 2 Ibid.

Secondary effects include: higher prices for goods and services reduced income and job losses2 1Matthias Ruth, Dana Coelho, and Daria Karetnikov. A Review and Assessment by the Center for Integrative Environmental Research (CIER) at the University of Maryland, October 2007. Center for Integrative Environmental Research, University of Maryland

What economic Sectors/Industries are expected to be most directly affected? 1. Agriculture In some parts of the nation, growing conditions will improve as temperatures continue to rise (colder regions become warmer) Other parts of the nation are projected to see worsening conditions as water resources dwindle, or rainfall becomes more frequent (or infrequent), and land becomes unsuitable for farming. Changes in climate are also associated with an increase in the spread of pests and plant diseases that previously would not have had an impact (CIER)

Natural Resources Defense Council Natural Resources Defense Council. Climate Change Threatens Health, http://www.nrdc.org/health/climate/drought.asp

Union of Concerned Scientists, 2008, “Rapidly Rising Seas: What the Science Tells Us,” http://www.ucsusa.org/sites/default/files/legacy/assets/documents/global_warming/Causes-of-Sea-Level-Rise.pdf

A more recent estimate points out that “From 1993 to 2008, the global rate has risen to 0.11 to 0.13 inch per year,”(Union of Concerned Scientists). At this rate – an increase of an average .12 inches per year – would mean that this 20 inch threshold would not be reached in 2100; however, if accelerated rates of rising seas are factored in, it could. Many of the CIER study’s cost estimates of climate change related damage – made ten years ago – turn out to be quite accurate. For instance, the study predicted the cost of and type of protections that would be needed to protect vulnerable coastal areas. Union of Concerned Scientists, 2008, “Rapidly Rising Seas: What the Science Tells Us,” http://www.ucsusa.org/sites/default/files/legacy/assets/documents/global_warming/Causes-of-Sea-Level-Rise.pdf

But as a result of a warming climate, the glaciers are disappearing. Western U.S.: A recent New York Times report1 notes that the glaciers of Glacier National Park in Montana are rapidly disappearing, threatening the ecosystem of the Western U.S. The report notes: “A century ago, this sweep of mountains on the Canadian border boasted some 150 ice sheets, many of them scores of feet thick, plastered across summits and tucked into rocky fissures high above parabolic valleys. Today, perhaps 25 survive. In 30 years, there may be none”. Following the winter thaw, melting ice has provided a vital source of water for residents and farmers downstream. But as a result of a warming climate, the glaciers are disappearing. 1Source: MICHAEL WINES “Climate Change Threatens to Strip the Identity of Glacier National Park.” New York Times, November 22, 2014.

…and the peak flow of water from the melting glaciers is starting much earlier in Spring and ending much too soon – before crops are ready to be harvested – resulting in water shortages when demand is at its peak...resulting in an imbalance in the demand and supply for water. Agriculture severely impacted. What other affects from this? Other sectors of the economy affected? 2. Recreation – ski resorts: “Mountain snow packs are shrinking. In recent decades, rising winter temperatures have increasingly changed snows to rain.” Tourism $$ shrink 3. Population: Many densely populated cities & towns south of glaciers; very large number of businesses - displacement. 4. Wildlife/ecosystems: as habitats disappear, species die out or are threatened.

Northeastern U.S. 2. Infrastructure/buildings/transportation systems especially in coastal areas are highly vulnerable. Value of residential and commercial property in northeast was estimated by CIER to be $4 trillion in 2004; a decade later, this value is clearly more. Interestingly, the Center’s analysis in 2004 predicted the damages from a category 4 hurricane hitting a major metropolitan area as costing between $50 and $60 billion in insurance losses. The estimated losses to property and businesses from Hurricane Sandy in 2012 reached an estimated $65 billion.

New York: $32 billion- statewide; $19 billion in New York City3 The estimated losses to property, businesses and infrastructure from Hurricane Sandy in 2012: Total $65 billion1 New Jersey: $38.6 billion2 New York: $32 billion- statewide; $19 billion in New York City3 MTA: $4.75 billion in infrastructure losses; $246 million in lost revenue2. Predicted losses from sea level rise: The study predicted (in 2004) a sea level rise in the northeast-mid Atlantic region of 20 inches by year 2100. 1 USA Today, “Hurricane Sandy, drought cost U.S. $100 billion.” Jan. 25, 2013 2 CNN, “Hurricane Sandy Fast Facts,” Nov. 5, 2014 3 New York Times, “Hurricane Sandy’s Rising Costs”, November 27, 2012

3. Income loss Losses to tourism industries from snow melt; flood; drought. This translates to $millions in lost income to businesses and workers as jobs once in demand dwindle with weak business conditions. Losses to agricultural industries from lower output. Losses to fisheries from depleted species.

Rising government indebtedness resulting from needs to invest in rebuilding and repairing damaged infrastructure. Vulnerability of a significant percentage of nation’s population living in coastal areas to lost jobs and business resulting from a severe weather event or disaster

Quantifying the Economic Cost of Climate Change One estimate of how to measure the Economic Costs of climate change has been developed by public policy researcher Quantifying the Economic Cost of Climate Change https://www.youtube.com/watch?v=yNYZJD_llno https://www.youtube.com/watch?v=-dG2BfpTkxs (first 10 minutes) Robin Hahnel on the Political Economy of Climate Change 1. Impact of warming on global economic output http://news.stanford.edu/news/2015/october/videos/1593.html 2. PBS video on evidence globally: PBS Global Warming The Signs and the Science https://www.youtube.com/watch?v=xVQnPytgwQ0