Extreme heat has cost the global economy an estimated $16 trillion

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Extreme heat has cost the global economy an estimated $16 trillion
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Extreme heat comes with an economic cost, and researchers are starting to understand the total. Presented by Deloitte ad

push workers to stay home or cut their days short and businesses temporarily close.

However, the total price tag is just starting to come into focus as emerging research shows the costs of scorching temperatures is far higher than previously understood. "A lot of studies have examined the impacts of extreme heat on health and mortality risks, as well as on labor productivity in certain sectors, like agriculture and construction," Justin Mankin, an associate professor of geography at Dartmouth College, told Insider. Newly available economic data and more advanced climate models now make it possible to measure how extreme heat hurts the global economy.

Between 1992 and 2013, the world lost an estimated $16 trillion, on average, because of extreme heat fueled by the climate crisis, a study Mankinfound. The losses were much higher in poor tropical countries, accounting for up to 6.7% of GDP per capita in the regions. Wealthier regions saw a 1.5% hit to GDP per capita.

The findings underscored the unequal burdens of the climate crisis, especially because rich countries were the largest polluters, Mankin said. The economies in low-income countries tend to be more vulnerable to extreme heat and other disasters because they're agricultural-based, a large fraction of the workforce are outdoor laborers, and energy infrastructure isn't resilient to stress.

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