In addition to the negative quality of life and health effects, excessive heat involves substantial economic costs. The Perryman Group estimated the net losses associated with recent heat conditions, as well as the potential long-term effects of hotter temperatures.
During the past 12 months, the United States has been about 2.39 degrees above the twentieth-century global standard. If that pattern continues through the summer and the remainder of the year, the U.S. economy will lose an estimated $110.2 billion in real gross product (measured in 2017 dollars) and 663,000 jobs compared to projections under normal weather conditions. As effects compound, losses could be expected to rise to $1.1 trillion in real gross product and more than five million jobs by 2050.
Extreme weather can involve a high human cost. In addition, heat waves and other events cause economic disruptions and inhibit growth. Although the effects vary greatly across industries, gains are far outweighed by losses. Over time, negative effects compound, leading to even more damage to the economy.
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