Climate Economics and a Cost We Can’t Ignore
The state has grown significantly over the past generation. Much of what the state now takes responsibility for has obvious advantages to citizens, but climate change is on a completely different scale.
To put it bluntly, climate change is like an unpaid bill that keeps growing.
We already know the price tag of climate change will be enormous. What we’re facing is what the insurance industry calls an “unquantifiable, progressively certain risk.” In other words, the ramifications of climate change are unavoidable, even if the total cost is still hard to predict. As the risk mounts, it also becomes more certain.
Yikes.
Every year, we see reports estimating the impact of climate change on our Gross Domestic Product (GDP). On an annual basis, the number is relatively small. But think about the cumulative total impact over your entire lifetime. That number, whatever it will amount to, is rather large — and a cost we can’t ignore.
Some may still be asking how this affects everyday Americans. Over a citizen’s lifetime, climate costs pile up, eventually morphing into enormous financial burdens — not just on GDP, but on everyday life, from health care to property damage, infrastructure repairs and even food prices.
For example, the expense of extreme weather events alone — from hurricanes to wildfires — costs billions. Just like a catastrophic health expense, the climate doesn’t pause while we budget for it. Even with reasonable support, climate-related expenses will rapidly exceed what government budgets can cover.
Some in our federal government are already thinking clearly about the economic side of climate change.
A recent report by the Government Accountability Office (GAO) spells out exactly what’s needed. I encourage you to spend some time reading the report; however here are three clear takeaways:
Measure it to manage it: We can’t handle what we can’t measure. To make smarter decisions, agencies need the tools to accurately track the economic impacts of climate change.
Accepting the limits: With finite resources, the government must set realistic expectations for what it can support, just as it does in areas like health care.
Setting smart priorities: It’s crucial that limited funds go where they make the biggest impact, like reinforcing infrastructure and developing early-warning systems.
The report suggests that Congress should facilitate the collection of climate impact data, which will, in turn, help leaders make smart, rational choices as they deploy limited resources. The price of inaction isn’t just economic; it’s deeply personal, affecting everything from our homes to our health. Moreover, Congress has the power to ensure a consistent game plan across the federal government.
So what can be done going forward?
We can make rational decisions when we have comprehensive data. We need Congress to pass funding enabling agencies to closely track climate impact costs. With better data, we can prioritize spending in areas that matter most and guide citizens on what to expect from federal support.
Bipartisan Climate Action aims to support members of Congress who are rolling up their sleeves to tackle these complex, critical issues. Because facing climate change means facing up to its many costs and preparing our government and the American people for the road ahead.