3 Ways Extreme Heat Can Hurt the Economy

3 Ways, Extreme Heat, Can Hurt the Economy.
3 Ways, Extreme Heat, Can Hurt the Economy.
As dozens of cities in the West experience
all-time high temperatures, 2021 is expected
to have one of the hottest summers on record.
As dozens of cities in the West experience
all-time high temperatures, 2021 is expected
to have one of the hottest summers on record.
The extreme heat has caused hundreds of deaths, sparked wildfires and worsened drought conditions in over a dozen states.
The extreme heat has caused hundreds of deaths, sparked wildfires and worsened drought conditions in over a dozen states.
Business Insider cites a large body of work that links heat to economic outcomes.
Business Insider cites a large body of work that links heat to economic outcomes.
Here are 3 ways they say
extreme heat affects the economy:.
1. Extreme heat hinders growth.
A 2018 study found that the economies
of US states tend to grow at a slower pace
during relatively hot summers. .
Higher summer temperatures reduce growth
in many industries, and workers are
less productive when it's hotter out.
2. Higher temperatures equal lower crop yields.
Extreme heat takes a toll on some crops,
including corn, soybeans and cotton. .
The consequently lower yields could be costly
for US agriculture which depends
heavily on those crops.
The consequently lower yields could be costly
for US agriculture which depends
heavily on those crops.
3. High temperatures drastically increase energy use.
According to a 2011 study, just one day with temperatures above 90 degrees Fahrenheit can increase annual household energy use by 0.4%.
This increase in electricity use stresses electric grids wihch can lead to blackouts.
This increase in electricity use stresses electric grids wihch can lead to blackouts.
California's 2019 blackout cost
the state an estimated $10 billion.
California's 2019 blackout cost
the state an estimated $10 billion