The Energy Mix

Top Menu

  • About
  • Latest Digest/Archive
  • Partners
  • Which Energy Mix is this?
  • Contact

Main Menu

  • News Archive by Category
    • Climate & Society
      • Carbon Levels & Measurement
      • Carbon-Free Transition
      • Climate Action/”Blockadia”
      • Climate Denial & Greenwashing
      • Climate Policy/Meetings/Negotiations
      • Culture, Curiosities, & Humour
      • Demographics
      • Energy Politics
      • Energy Subsidies
      • Energy/Carbon Pricing & Economics
      • Finance & Investment
      • First Peoples
      • Insurance & Liability
      • International Agencies & Studies
      • Jobs & Training
      • Legal & Regulatory
      • Media, Messaging, & Public Opinion
      • Methane
      • Travel, Leisure & Recreation
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought, Famine & Wildfires
      • Food Security
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Human Rights & Migration
      • Ice Loss & Sea Level Rise
      • International Security & War
      • Severe Storms & Flooding
      • Soil & Natural Sequestration
      • Water
    • Demand & Distribution
      • Air & Marine
      • Auto & Alternative Vehicles
      • Batteries/Storage
      • Buildings
      • Cities
      • Electricity Grid
      • Energy Access & Equity
      • Off-Grid
      • Petrochemicals & Plastics
      • Supply Chains & Consumption
      • Transit
      • Walking & Biking
    • Jurisdictions
      • Africa
      • Arctic & Antarctica
      • Asia
      • Australia
      • Brazil
      • Canada
      • China
      • Europe
      • India
      • International
      • Mexico, Caribbean & Latin America
      • Middle East
      • Oceans
      • Small Island States
      • South & Central America
      • Sub-National Governments
      • United States
    • Non-Renewable Energy
      • CCS & Negative Emissions
      • Coal
      • Nuclear
      • Oil & Gas
      • Pipelines/Rail Transport
      • Shale & Fracking
      • Tar Sands/Oil Sands
    • Opinion & Analysis
    • Renewable Energy
      • Bioenergy
      • Demand & Efficiency
      • General Renewables
      • Geothermal
      • Hydrogen
      • Hydropower
      • Research & Development
      • Solar
      • Wave & Tidal
      • Wind
  • Special Reports
    • Alberta’s Bitumen Pipe Dream
    • Canada’s Drive to Net Zero
    • Carbon Farming
    • City and Sub-National Action
    • Drawdown
    • Drive to 1.5
    • 26-Week Climate Transition Program for Canada
    • America’s Electoral Climate 2020
    • Canada’s Climate Change Election 2019
    • The Energy Mix Yearbook 2018
      • Climate Extremes
      • Fossils Go For Broke
      • Renewables (R)Evolution
      • Electric Vehicles
      • Canada’s Contradiction
      • COP24
      • Pipeline Politics
      • Jobs and Just Transition
      • Cities and Sub-Nationals
      • Finance and Divestment
      • Climate Litigation
  • Webinars & Podcasts
  • About
  • Latest Digest/Archive
  • Partners
  • Which Energy Mix is this?
  • Contact
  • Subscribe
  • Donate

logo

  • News Archive by Category
    • Climate & Society
      • Carbon Levels & Measurement
      • Carbon-Free Transition
      • Climate Action/”Blockadia”
      • Climate Denial & Greenwashing
      • Climate Policy/Meetings/Negotiations
      • Culture, Curiosities, & Humour
      • Demographics
      • Energy Politics
      • Energy Subsidies
      • Energy/Carbon Pricing & Economics
      • Finance & Investment
      • First Peoples
      • Insurance & Liability
      • International Agencies & Studies
      • Jobs & Training
      • Legal & Regulatory
      • Media, Messaging, & Public Opinion
      • Methane
      • Travel, Leisure & Recreation
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought, Famine & Wildfires
      • Food Security
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Human Rights & Migration
      • Ice Loss & Sea Level Rise
      • International Security & War
      • Severe Storms & Flooding
      • Soil & Natural Sequestration
      • Water
    • Demand & Distribution
      • Air & Marine
      • Auto & Alternative Vehicles
      • Batteries/Storage
      • Buildings
      • Cities
      • Electricity Grid
      • Energy Access & Equity
      • Off-Grid
      • Petrochemicals & Plastics
      • Supply Chains & Consumption
      • Transit
      • Walking & Biking
    • Jurisdictions
      • Africa
      • Arctic & Antarctica
      • Asia
      • Australia
      • Brazil
      • Canada
      • China
      • Europe
      • India
      • International
      • Mexico, Caribbean & Latin America
      • Middle East
      • Oceans
      • Small Island States
      • South & Central America
      • Sub-National Governments
      • United States
    • Non-Renewable Energy
      • CCS & Negative Emissions
      • Coal
      • Nuclear
      • Oil & Gas
      • Pipelines/Rail Transport
      • Shale & Fracking
      • Tar Sands/Oil Sands
    • Opinion & Analysis
    • Renewable Energy
      • Bioenergy
      • Demand & Efficiency
      • General Renewables
      • Geothermal
      • Hydrogen
      • Hydropower
      • Research & Development
      • Solar
      • Wave & Tidal
      • Wind
  • Special Reports
    • Alberta’s Bitumen Pipe Dream
    • Canada’s Drive to Net Zero
    • Carbon Farming
    • City and Sub-National Action
    • Drawdown
    • Drive to 1.5
    • 26-Week Climate Transition Program for Canada
    • America’s Electoral Climate 2020
    • Canada’s Climate Change Election 2019
    • The Energy Mix Yearbook 2018
      • Climate Extremes
      • Fossils Go For Broke
      • Renewables (R)Evolution
      • Electric Vehicles
      • Canada’s Contradiction
      • COP24
      • Pipeline Politics
      • Jobs and Just Transition
      • Cities and Sub-Nationals
      • Finance and Divestment
      • Climate Litigation
  • Webinars & Podcasts
Advanced Search
Air & MarineCitiesDrought, Famine & WildfiresEnergy/Carbon Pricing & EconomicsHeat & TemperatureIce Loss & Sea Level RiseSevere Storms & FloodingUnited States
Home›Demand & Distribution›Air & Marine›‘Big Blind Spot’ Keeps Climate Impacts Out of Economic Forecasts

‘Big Blind Spot’ Keeps Climate Impacts Out of Economic Forecasts

August 26, 2018
August 26, 2018
 
87
0
Share:
  •  
  • 15
  •  
  •  
  •  
  •  
  •  
    15
    Shares
  Print This Story
jplenio/pixabay

From heat waves that ground aircraft, to rising seas that inundate waterfronts, to “wildfires that consume whole cities and blanket the (U.S.) West Coast in smoke”, climate change is the “big blind spot” that gets left out of most economic forecasts, according to a report earlier this month on CNN Money.

The most recent study to quantify the impact came from the U.S. Federal Reserve Bank of Richmond, which used historical data to attribute a 0.15 to 0.25% decrease in average state-level output to each 1°F (0.6°C) increase in average summer temperature.

Like this story? Subscribe to The Energy Mix and never miss an edition of our free e-digest.

SUBSCRIBE

It might not sound like much, but the impact “snowballs over time,” CNN notes. “If meaningful action isn’t taken to curb emissions, U.S. economic growth will be a third lower than it would otherwise have been by the end of this century—or sooner, if warming accelerates even faster than scientists currently anticipate. Theoretically, that means Americans will be poorer and have lower living standards as a result,” on top of the day-to-day disruption of extreme weather events.

Even now, “climate change is having a real impact, not just on the environment but on the economy,” CNN adds. “But almost no mainstream economic forecasting model takes that into account, in an omission that some economists say could affect the accuracy of economic predictions” for the future.

The fundamental problem is that most economic analysis focuses on short-term, short-lived factors like tax cuts or tariffs, even though climatic changes ultimately have a greater impact on economies (and the people who inhabit them). “Most of those [climate science] studies look at growth 50 years forward or even longer,” said JP Morgan U.S. Chief Economist Michael Feroli. “Our current forecast extends to the end of 2019.”

But even over the decade-long span covered by the Congressional Budget Office, “the impact of climate on growth could be significant,” CNN notes.

“Through the beauty—or here, ugliness—of compound interest rates, even a tiny hit to growth rates can have huge economic consequences down the line,” Harvard University energy economist Gernot Wagner told CNN [in a moment of severe definitional strangeness for beauty and ugliness—Ed.] “And sadly, the more we learn, the more it seems that climate damages do indeed affect productivity and, thus, economic growth rates.”

Share:
  •  
  • 15
  •  
  •  
  •  
  •  
  •  
    15
    Shares
  Print This Story

Find more stories about
Air & MarineCitiesDrought, Famine & WildfiresEnergy/Carbon Pricing & EconomicsHeat & TemperatureIce Loss & Sea Level RiseSevere Storms & FloodingUnited States

    Leave a reply Cancel reply

    Recent Posts

    • ‘Red Alert for Planet’ as UN Report Projects Only 0.5% Emissions Cut by 2030
      ‘Red Alert for Planet’ as UN Report Projects Only 0.5% Emissions Cut by 2030
      March 1, 2021
    • Lookback: Anjali Appadurai Speaks for ‘Silent Majority’ at COP 17
      Lookback: Anjali Appadurai Speaks for ‘Silent Majority’ at COP 17
      March 1, 2021
    • B.C. Pushes Forward with Site C Hydro Megaproject Despite $16-Billion Price Tag
      B.C. Pushes Forward with Site C Hydro Megaproject Despite $16-Billion Price Tag
      March 1, 2021
    • RBC Adds $500 Billion to Sustainable Funds, Faces Mounting Pressure for Fossil Investments
      RBC Adds $500 Billion to Sustainable Funds, Faces Mounting Pressure for Fossil Investments
      March 1, 2021
    • ‘Future Belongs to Renewables’ as Norwegian Wealth Fund Blacklists Four Alberta Fossils
      ‘Future Belongs to Renewables’ as Norwegian Wealth Fund Blacklists Four Alberta Fossils
      March 1, 2021

    News Feed

    Top News

    • Alberta Budget Makes ‘No Provision’ for Keystone Cancellation
      February 28, 2021
    • GM Unveils Retooled, Less Expensive Chevy Bolt
      February 28, 2021

    Read More

    Carbon-Free Transition

    • GM Unveils Retooled, Less Expensive Chevy Bolt
      February 28, 2021
    • Battery Technology Funding ‘Exploded’ in 2020
      February 28, 2021

    Read More

    Canada

    • Alberta Budget Makes ‘No Provision’ for Keystone Cancellation
      February 28, 2021
    • Sask First Nations Rally Behind Community in Fight Against Uranium Firm
      February 28, 2021

    Read More

    U.S.

    • Empire State Building to Run on 100% Renewables
      February 28, 2021
    • Minnesota Governor Sets 2040 Carbon-Free Power Target
      February 28, 2021

    Read More

    International

    • Climate Figures Prominently in German State Elections This Month
      February 28, 2021
    • Spanish Broadband Firms Tap In to Solar
      February 28, 2021

    Read More

    • About the Energy Mix
    • Contact
    • Privacy Policy and Copyright
    Copyright 2020 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.