NEW YORK — Climate change is likely to exact enormous costs on U.S. regional economies in the form of lost property, reduced industrial output and more deaths, according to a report backed by a trio of men with vast business experience.
It was commissioned by the Risky Business Project, which describes itself as nonpartisan and is led by former New York City Mayor Michael R. Bloomberg, former Treasury Secretary Henry M. Paulson Jr. and Thomas F. Steyer, a former hedge fund manager.
“If we act immediately, we can still avoid most of the worst impacts of climate change and significantly reduce the odds of catastrophic outcomes,” Paulson said.
Among the predictions: Between $66 billion and $106 billion in coastal property will likely be below sea level by 2050, labor productivity of outdoor workers could be reduced by 3 percent because extremely hot days will be far more frequent, and demand for electricity to power air conditioners will require the construction of more power plants that will cost electricity customers up to $12 billion per year.
“Every year that goes by without a comprehensive public and private sector response to climate change is a year that locks in future climate events that will have a far more devastating effect on our local, regional, and national economies,” warn the report’s authors.
The analysis and calculations in the report were performed by the Rhodium Group, an economic research firm, and Risk Management Solutions, a catastrophe-modeling company that works for insurance companies and other businesses. It was paid for by the philanthropic foundations of Bloomberg, Paulson and Steyer, among others.
The report analyzes the impacts of climate change by region to better show how climate change affects the businesses and industries that drive each region’s economy.
Higher temperatures will reduce Midwest crop yields by 19 percent by midcentury and by 63 percent by the end of the century.
The Southwest will see an extra month of temperatures above 95 degrees by 2050, which will lead to more frequent droughts and wildfires.