Climate change is now causing a large financial burden on the economy and households in the U.S. According to a podcast produced CNBC, climate change is leading to more extreme weather events and this is impacting everyday Americans. The report claims that every three weeks the U.S. experiences a billion-dollar weather disaster, whereas in the 1980s it happened only every four months. This shows the significant increase in weather-related disasters.
The economic toll due to this can be seen through increased water stress, loss of agricultural produce, impacts on tourism, declining real estate value, and extensive damage to property and infrastructure. The costs associated are expected to grow over time as the impact of climate change intensifies.
Furthermore, the changing climate can lead to “weird and unpredictable” consequences. More than 3 million Americans have been displaced due to extreme weather events in the past year.
Rumbach further elaborates on the secondary costs of climate-change-induced maladies. For instance, for every additional “hot day” per year, especially in the Western U.S., the rates of workplace injuries increase. Similarly, declining agricultural output may fuel rising food prices, and greater property damage could lead to higher insurance rates.
It is important for Americans to adapt to these changing climatic conditions and the worsening impacts. The first thing consumers should do is review their current homeowners or renters insurance policy. This is necessary because homeowner’s insurance does not cover flood damage. Consumers should also ensure that they are not underinsured.
Lastly, there are potential ways for investors to bolster their investment portfolio while having a positive impact on the environment, for instance, investing in companies that produce electric car batteries or mining lithium could be a great investment.