PLEA Network

22 October 2015, Climate News Network, Hurricanes’ economic havoc as world warms. Analysis of insurance data convinces environmental economists that climate change is pushing up the cost of dealing with the disastrous effects of extreme weather events. Climate change could already be costing the US billions of dollars each year in hurricane damage alone. Economists from Mexico and Europe believe that somewhere between $2bn and $14bn of the financial costs of hurricane damage in 2005 could be attributed to the impact of global warming. This is a bold statement. But Francisco Estrada, an environmental economics researcher at  the National Autonomous University of Mexico, and European colleagues report in Nature Geoscience that they have looked at the pattern of economic losses from hurricanes that matches a rise between 1990 and 2005 in the number and intensity of tropical cyclones. They say that this upward trend in loss “cannot be explained by commonly-used socioeconomic variables”. The distinction is an important one. Economic damage from climate-related events − ice storms, drought, flood, windstorms and heatwaves – has been on the increase for decades, but one explanation for this is population growth and economic development, even in the poorest regions. Read more here