Costs of Climate Change - A Potpourri

 

Amidst the back and forth about the costs of the hated Carbon Tax and all the other stuff.  Few are mentioning how much climate change is costing us.  Google AI came up with this:

Climate change is estimated to add approximately $700 to the average Canadian household's cost of living per year, primarily through higher grocery bills, rising home insurance premiums, and increased taxes for disaster recovery and infrastructure repairs. 

Here's a breakdown of how climate change impacts the cost of living:

1. Rising Costs of Goods and Services:

• Food Prices:

  Extreme weather events, such as droughts and floods, can disrupt agricultural production, leading to food shortages and higher prices. 
• Energy Costs:

  Climate change can lead to increased energy consumption for heating and cooling, as well as higher energy prices due to disruptions in supply chains and infrastructure damage. 
• Home Insurance Premiums:

  Increased frequency and severity of extreme weather events (wildfires, floods, etc.) lead to higher insurance costs for homeowners. 

2. Increased Taxes and Government Spending:

• Disaster Recovery and Infrastructure Repairs:

  Climate-related disasters (wildfires, floods, etc.) require significant government spending on recovery and infrastructure repairs, which can lead to higher taxes. 
• Healthcare Costs:

  Climate change can exacerbate health problems, leading to increased healthcare costs. 

3. Economic Impacts:

• Job Losses:

  Climate change can lead to job losses in sectors vulnerable to extreme weather and economic disruptions. 
• Reduced Economic Growth:

  Climate-related damages can slow down economic growth and reduce overall productivity. 
• Increased Inflation:

  Extreme weather events can disrupt supply chains and increase prices, contributing to inflation. 

4. Specific Examples:

• The 2021 season of climate disasters in BC, which included the heat dome, wildfires, floods, and landslides, cost the province over $17 billion. 
• Some economists estimate that inflation could rise permanently by as much as 1% a year due to climate change. 
• The expected global cost of climate change damage is estimated at $1.7-$3.1 trillion per year by 2050. 
• By 2025, climate impacts will be slowing Canada's economic growth by $25 billion annually, which is equal to 50% of projected GDP growth. 

Doing nothing isn't the no cost option some think it is.