Effects of Climate Change

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Effects of Climate Change Harm the Economy

Click on a state to see how severe weather due to climate change will increasingly cause billions of dollars in damages to agriculture, livestock, and infrastructure.

Alaska

Alaska has warmed more than twice as fast as the rest of the United States over the last 50 years. Its annual average temperature has increased 3.4°F, and winters have warmed by 6.3°F. Thawing permafrost will sink and collapse, damaging forests, homes, and infrastructure; adding billions in repair costs to public infrastructure; and displacing entire Native Alaskan villages such as Newtok.

Alabama

Hurricane Ivan in 2004 caused about $15.4 billion in damages and at least 57 deaths. Hurricanes will become even more frequent and severe due to global warming.

Arkansas

Rising temperatures and parched soil caused by global warming will hurt Arkansas’s farmers, who produce $4 billion annually for the state.

Arizona

Providing the water demanded throughout the United States will cost about $950 billion more per year by 2010 as a result of climate change, much of which will be spent in the West and the South. Winter precipitation in Arizona is increasingly variable, with more frequent extremely dry spells and extremely wet winters.

California

California’s Central Valley is estimated to lose $6 billion during forecasted dry years due to the decreased rainfall caused by global warming. Wildfires in Southern California in 2003 burned over 743,000 acres of brush and timber, costing over $2.5 billion in damages and killing 22 people. Hotter and dryer conditions caused by climate change will make wildfires even more common in the future.

Colorado

Shorter winters will erode Colorado’s $2-billion skiing and snowboarding industry, causing losses of more than $375 million by 2017. More frequent droughts will damage the tourism and agriculture industries—a 2002 reservoir shortage cost Colorado’s citizens $1 billion.

Connecticut

Several weeks of heavy rain caused severe floods in June 2006 that damaged at least $1 billion of property and killed at least 20 people throughout the Northeast region. Constructing sea wall and bulkhead protection for just 25 percent of the Northeast’s coastline would cost anywhere from $300 million to $8 billion.

Delaware

The projected 20-inch sea level rise by 2100 would cost Delaware $34-$143 million just to replenish the sand lost to shoreline erosion, and constructing sea wall and bulkhead protection for only 25 percent of the Northeast and Mid-Atlantic coastline would cost between $300 million and $8 billion.

Florida

Sea level rise will inundate 99.6 percent of Monroe County, 70 percent of Miami-Dade County, and 10 to 22 percent of 14 other counties by 2060. This will permanently flood residential real estate worth over $130 billion. The projected increase in hurricane intensity from climate change will inflict $25 billion of annual damages by 2050.

Georgia

Higher temperatures and more frequent droughts caused by climate change will damage Georgia’s $2.6-billion agricultural industry, inflicting annual losses of up to $110 million. Sea level rise and erosion will damage coastal properties, resulting in the loss of 5,000 jobs and costing nearly $300 million annually.

Hawaii

Increased rainfall in the Pacific Islands during the summer months will likely lead to more flooding, reduced drinking water quality, and smaller crop yields. Climate change is likely to enhance peak wind intensities and near-storm precipitation from future tropical cyclones, leading to an increased loss of life, damage to infrastructure and property, and contamination of freshwater supplies.

Iowa

Iowa’s agriculture sector may more frequently experience droughts and losses similar to the drought of 1988, which cut production of grain by 31 percent and production of corn by 45 percent. Localized droughts in the spring and summer of 2005 caused about $1 billion in damages and crop losses—mostly corn and soybean—throughout the Midwest.

Idaho

The region should expect a 50-percent increase in the number of acres burned by 2020, and a 100-percent increase by 2040, raising the regional fire suppression bill to $124 million. Expected annual regional crop losses from water shortages are projected to rise from $13 million at present to $79 million by mid-century, which is 1.4 to 8.8 percent of the agriculture industry’s $901-million total output.

Illinois

The Illinois farming sector—which employs 13,000 people—is in danger of losing $9 billion in annual profits from rising temperatures and agricultural pests. Illinois has suffered over $287 million in annual damages from floods since 1983, and flooding may occur more frequently as precipitation levels increase.

Indiana

Indiana’s farmers contributed over $8.2 billion to the state economy in 2007 but will lose significant quantities of their crops to insect pests and soil erosion caused by climate change.

Kansas

Increased flooding could cost Kansas’s agricultural sector as much as $150 million annually by 2032. A 1-percent annual increase in the persistence of invasive species—species well-suited to the changes in winter temperatures and precipitation created by climate change—could cause $58 million in damages and a loss of more than 400 jobs throughout Kansas’s economy by 2017.

Kentucky

Corn and soybean yields could fall by 35 percent if temperatures rise above crops’ tolerance. Kentucky forestry provides $6.4 billion to the economy and employs approximately 37,500 Kentuckians, but the EPA predicts that forested areas in Kentucky could decline by as much as 25 percent due to global warming.

Louisiana

A total of 850,791 housing units were damaged in Hurricane Katrina; the cost to rebuild all this housing could exceed $85 billion. Climate change will increase the severity and frequency of hurricanes. Louisiana’s forests are particularly susceptible to salt water intrusion caused by sea level rise. Movement of salt water into fresh water aquifers is known to threaten arboreal ecosystems.

Massachusetts

Estimates for evacuating the Northeastern coastal region ranges from nearly $2 billion to over $6.5 billion. Changes in water quality and water temperature on the coasts may negatively affect the $63-billion ocean economy sector, which employs 1.1 million people in the Northeast.

Maryland

More intense hurricanes will flood Maryland’s coastal properties, creating damages like the $462 million caused by 2003’s Hurricane Isabel. Rising sea levels in the Port of Baltimore will require increased dredging and threaten the $2 billion and 127,000 jobs that the port directly and indirectly creates.

Maine

A 10- to 20-percent decrease of winter skiing days will result in an industry loss of $405-$810 million per year. The length of the Northeast winter snow season will be cut in half by the end of this century according to projections under a higher carbon emissions scenario.

Michigan

If Great Lakes water levels decrease at expected rates, system connectivity along the Great Lakes-St. Lawrence route could decline by 25 percent, possibly causing an annual economic loss of almost $1.5 billion in foreign trade for ports in Detroit, Muskegon, and Huron. More frequent and more powerful flooding will cause $506 million in economic damages and job losses for nearly 9,700 Michigan workers.

Minnesota

Climate change will impair system connectivity of the shipping industry on the Great Lakes by about 25 percent due to a projected drop in water level, causing a loss of $850 million annually across the great lakes region.

Missouri

Missouri forestry provides $1.69 billion to the economy and employs 27,762 workers at an average annual wage of $41,289.13. Yet forested areas in Missouri could decline by as much as 10-20 percent by 2100 due to global warming. Corn and soybean yields could also fall by as much as 22 percent in Missouri.

Mississippi

Hurricane Katrina devastated the coast of Mississippi in 2005, costing the state billions of dollars in damages—more than $672 million has already been spent repairing the Biloxi and Bay St. Louis bridges alone. Warmer waters in the Gulf Coast that are caused by climate change will lead to an increase in the frequency and severity of hurricanes.

Montana

Snowpack in Montana—the main source for the state’s water supply—has declined 15-30 percent over the last 50 years and climate change is expected to increase this melting. Montana has great potential for wildfires and climate change may lead to a five-fold increase in the amount of acreage burned by 2100.

Nebraska

The number of 90° days in Nebraska is expected to double, reaching 75-100 days of the year by 2090, up from 30-45 between 1961 and 1971. This will damage agriculture because most crops—even those well-adapted to warmth like tomatoes—can have a reduced yield and/or quality when daytime temperatures exceed 90°F during the crucial reproductive stages. What's more, rising temperatures, faster evaporation rates, and more sustained drought brought on by climate change will exacerbate the already dire overtaxation of the Ogallala aquifer.

North Carolina

Eroding coastlines and vanishing beaches will put $5.5 billion worth of coastal property at risk and likely harm North Carolina’s tourism industry, which brings in $600 million annually and employs 10,000 people. Hurricanes already batter North Carolina: Hurricane Fran caused $6.7 billion in losses for North Carolina, and North Carolina’s crop damages from hurricanes totaled $2.5 billion between 1996 and 2006. The increase in hurricane intensity resulting from climate change will only increase these damages.

North Dakota

The drought of 2006 in North Dakota cost $32 million in livestock damages, $310 million in the form of crop insurance indemnity payments, and $425 million in crop losses. Scab disease (Fusarium head blight), which will be exacerbated by climate change, caused over $544.76 million in economic losses in 2005.

New Hampshire

According to projections under a higher emissions scenario, the length of the Northeast winter snow season will be cut in half. Large portions of the Northeast are also likely to become unsuitable for growing popular varieties of apples, blueberries, and cranberries. The climate conditions suitable for maple, beech, and birch forests are projected to shift dramatically northward, eventually leaving only a small portion of the Northeast with a maple sugar business and colorful fall foliage, a major driver of autumn tourism revenue for the state.

New Jersey

A one-foot sea level rise would advance New Jersey’s shoreline inward up to 120 feet and threaten property worth over $106 billion. Atlantic City is predicted to flood by 2100 as a result of sea level rise. Storm surges to the current 100-year flood level are also expected to occur every one to two years on average.

New Mexico

Conservative estimates project that New Mexico will spend $3.2 billion annually by 2020 as a result of climate change. Coal-fired emissions and heat waves will increase the incidence of respiratory and heat-related illnesses in the state and climate-related health issues will absorb $421 million in annual expenses by 2020.

Nevada

Water resources in Nevada will need to be directed to existing commercial and residential sites as water resources such as Lake Mead dwindle and possibly dry up, which could constrain further development. This would be a serious economic setback, since construction and related industries employ 17 percent of Nevada’s workforce—about 157,000 people. Climate change is likely to exacerbate the already unsustainable strain on the Colorado River and Lake Mead—there is a 50 percent chance that Lake Mead will dry up by 2050, leaving 12 million to 36 million people without a secure water supply.

New York

Flooding in New York City will cost $300 million annually by the end of the century. “If temperatures rise beyond the tolerance levels of farmer’s crops, New York State’s agricultural yields will fall by 40 percent.”

Ohio

Lower water levels in Lake Erie will cause shipping and manufacturing losses of $1 billion every year. Forest changes will cause Ohio’s massive forest products industry to lose $8 billion annually.

Oklahoma

The Southern Great Plains agricultural sector lost $5.81 billion due to drought in 1995. Droughts will become more frequent and severe due to climate change.

Oregon

Expected annual crop losses from water shortages in the Pacific Northwest are projected to rise from $13 million at present to $79 million by mid-century, which accounts for 1.4 to 8.8 percent of the agriculture industry’s $901-million total output in the region. Declining snowpack levels caused by global warming are expected to lead to a 10-percent reduction in annual average stream flows and reduced peak spring flows across the Pacific Northwest by 2050. It will also diminish water supplies and destroy lower elevation skiing destinations.

Pennsylvania

More frequent and powerful flooding in Pennsylvania will inflict $9.2 billion in damages more than once every 10 years. Rising temperatures will induce heat stress in Pennsylvania’s dairy cows, which could cause $480 million in economic losses by 2100 and affect up to 5,300 jobs.

Rhode Island

The costs of a 20-inch sea level rise to coastal properties in the Northeast could amount to between $8 and $58 billion by 2100. Evacuation effort estimates for the Northeastern coastal region range from nearly $2 billion to over $6.5 billion.

South Carolina

Sand replenishment will cost South Carolina up to $9.4 billion by the end of the century, and 22 percent of the state’s population lives on the coast. Insurers have already raised their rates dramatically due to increasing hurricane risk. Homeowner insurance premiums in South Carolina climbed an average of 56.4 percent between 2001 and 2006. Insurers have dropped more than 20,000 coastal policies, and only one insurance company still offers wind damage coverage in the state.

South Dakota

South Dakota’s farmers contributed over $6.5 billion to the state economy in 2007 but will lose significant quantities of their crops to insect pests and soil erosion caused by climate change.

Tennessee

Tennessee’s $500-million hunting industry could lose more than $80 million per year from a significant decrease in game caused by climate change. Additionally, areas of the Midwest and Southeast were plagued by severe weather and tornadoes in April 2006—the worst damage occurring in Tennessee. The storms cost Tennessee roughly $1.5 billion in damages and climate change will only increase the price tag of extreme weather events.

Texas

Hurricane Rita caused inland flooding, storm surges and heavy wind damages in September 2005, leading to about $17.1 billion in damages and 119 deaths. Climate change is expected to increase the severity and frequency of hurricanes. One study estimated that net agricultural income will decrease by 16-29 percent by 2030 and by 30-45 percent by 2090 because of conflicting water uses around the San Antonio Texas Edwards Aquifer region.

Utah

Farmland is expected to lose about 36 percent of its value by 2100 due to decreased water supplies, translating into a loss of about $1,700 per farm. Climate change will cause winter snowpack to decline and snowmelt to occur earlier, which will compromise aquifers’ ability to store water and exacerbate Utah’s recent and massive increases in water demands.

Virginia

Virginia’s coast has been identified as the second most vulnerable region to global warming in the United States—surpassed only by New Orleans. Sea level rise and stronger hurricanes caused by climate change endanger Virginia’s $130 billion of coastal property; 20 percent of Virginians live in coastal counties, and Allstate now refuses to take on the risk of insuring their threatened homes.

Vermont

Vermont’s 2000 maple syrup producers made an estimated 37 percent of the nation’s supply in 2002. However, maple syrup sap flow is predicted to fall by 17-39 percent across the Northeast, inflicting a loss of $5.3-$12.1 million in annual revenue to this $31 million industry. The dairy industry is the most important agricultural sector in the Northeast, with annual production worth $3.6 billion. Yet heat stress in dairy cows— exacerbated by global warming—depresses milk production and birth rates for weeks to months. All but the northern parts of Maine, New Hampshire, New York, and Vermont are projected to suffer declines in July milk production by late century under a higher emissions scenario.

Washington

Washington’s farmers contributed $6.8 billion to the state economy in 2007 alone, yet will lose ground to insect pests and decreasing irrigation supplies caused by climate change.

Wisconsin

Summers in Wisconsin could be similar to Illinois summers in terms of average temperature and rainfall by 2030.Wisconsin is the second largest milk producer in the country and the dairy industry is expected to suffer negative consequences from climate change since milk production is temperature-sensitive and production decreases when temperatures advance beyond a certain threshold.

West Virginia

The growing season of 1999 was the driest on record in the Eastern United States, causing West Virginia’s agriculture sector more than $80 million in losses for the season. Warmer, dryer conditions—as well as droughts—are expected to become more frequent and severe due to climate change

Wyoming

Higher incidences of severe weather events are likely to cause major damage to the Plains region’s infrastructure. The region will also likely experience a 10-50 percent decline in annual wheat yields.

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