10-Year Price Tag for Extreme Weather Exceeds $350bDavid Wagman | October 26, 2017
Over the last decade, extreme weather and fire events have cost the federal government over $350 billion, according to the U.S. Office of Management and Budget.
These costs will likely rise as the climate changes, according to the U.S. Global Change Research Program. In February 2013, the Government Accountability Office (GAO) included limiting the federal government’s fiscal exposure by better managing climate change risks on its high-risk list.
GAO said in a report issued in late October that the two available national-scale studies that examine the economic effects of climate change across U.S. sectors suggest that potential economic effects could be “significant” and “unevenly distributed across sectors and regions.”
For example, for 2020 through 2039, one study estimated between $4 billion and $6 billion in annual coastal property damages from sea level rise and more frequent and intense storms. Also, under this study, the Southeast likely faces greater effects than other regions because of coastal property damages.
GAO said that information about the potential economic effects of climate change could inform decision makers about significant potential damages in different U.S. sectors or regions. According to several experts and prior GAO work, this information could help federal decision makers identify significant climate risks as an initial step toward managing such risks. This is consistent with, for example, National Academies leading practices, which call for climate change risk management efforts that focus on where immediate attention is needed.
According to GAO, the federal government has not undertaken strategic government-wide planning to manage climate risks by using information on the potential economic effects of climate change to identify significant risks and craft appropriate federal responses. By using such information, GAO says the federal government could take an “initial step in establishing government-wide priorities to manage such risks.”
GAO was asked to review the potential economic effects of climate change and risks to the federal government. Its report, released on October 24, examines (1) methods used to estimate the potential economic effects of climate change in the United States, (2) what is known about these effects, and (3) the extent to which information about these effects could inform efforts to manage climate risks across the federal government.
GAO reviewed two national-scale studies available and 28 other studies, interviewed 26 experts knowledgeable about the strengths and limitations of the studies, compared federal efforts to manage climate risks with leading practices for risk management and economic analysis and obtained expert views.
GAO recommends that the appropriate entities within the Executive Office of the President, including the Office of Science and Technology Policy, use information on potential economic effects to help identify significant climate risks and craft appropriate federal responses. Executive Office entities and the Environmental Protection Agency did not provide comment on the report.