Here’s How You’re Paying for Climate Change | Spending

States in the Midwest Northeast set record temperature highs on Monday as an extreme heat wave moved across the country from drought-ridden areas in the West, while at the other end of the spectrum, states in the South faced downpours flash flooding.


The consequences of extreme weather are varied across regions, but universally, researchers know that extreme weather events are likely to become more frequent costly for consumers.

It may be impossible today to put a quantifiable price tag on exactly how much climate change costs the typical American family in any given month, but researchers are working toward more closely tracking its economic effects.

At the current trajectory, global economic output is projected to decline between 11% to 14% by 2050 – translating to a global loss of $23 trillion – compared to a world with no temperature change, according to a Swiss Re Institute report released in April. This analysis accounts for both gradual climate changes acute events, which have obvious costs for families like property damage, medical bills resulting from severe injuries lost wages.

But both extreme weather events gradually increasing temperatures come at a cost for consumers, who may experience rising personal expenses in these climate-sensitive sectors:

  • Energy electricity costs for those not transitioned to more efficient options.
  • Food costs as crops are affected by temperature shifts.
  • Insurance premiums or a lack of insurance coverage entirely.
  • Medical bills resulting from climate-related health issues.


The average temperature is rising across the vast majority of the U.S., many regions are experiencing more extremely hot days. In a Climate Central analysis of temperatures in 246 U.S. locations, 38% of locations reported, on average, at least seven more days of extremely hot temperatures annually compared to 1970, 59% have reported an annual increase of at least three days.

In some areas, hotter temperatures may lead to more days nights that require air conditioning, says Jennifer Brady, senior analyst at Climate Central.

The average monthly electricity bill in the U.S. rose from $104.52 in 2009 to $115.49 in 2019, according to the U.S. Energy Information Administration. However, in the same time period, monthly electricity consumption in the U.S. declined 2.3%. This may be the result of consumer trends toward more energy-efficient products such as “the increased use of behind-the-meter generation (such as rooftop solar panels), high-efficiency appliances, more efficient lighting, smart energy-saving devices,” an EIA analysis notes.


Hotter temperatures changes in typical weather patterns can lead to crop losses supply chain disruptions. Some variation in food availability cost is normal, says Sarah Dougherty, senior manager of the Natural Resources Defense Council’s Green Finance Center. “But you have to imagine that happening more frequently more extremely,” she says.

Dougherty says consumers aren’t often facing more expensive food as a result of temperature increases today, but that this trend may become more common as farmers work to adapt to changing weather conditions.


It’s not yet possible to attribute specific health costs to climate change, according to Vijay Limaye, a scientist at the Natural Resources Defense Council, but environmental conditions may lead to costly health conditions.

“Climate change has made recent events more severe. It’s not a great leap of faith to say that more severe events lead to more health costs,” Limaye says.

Consumers face medical costs related to the physical risks of events like wildfires hurricanes as well as treatment for conditions like asthma resulting from poor air conditions, he says. But he says hotter days may also lead to less productivity unsafe work conditions that could result in lost wages.


The cost of insurance coverage for extreme events such as fire flood may rise in certain vulnerable regions, rising costs affect individuals beyond just those directly hit by a natural disaster.

“As there’s more more damage, the insurance is going to get more expensive or you’re going to get less coverage,” Dougherty says. “For insurance companies, if claims get larger larger more frequent, they have to cover them. Even if you weren’t hit by the wildfire, there’s a chance if you have any fire risk they might raise your rate, or if hurricanes are coming so often that everyone’s premiums go up.”

Though there are many factors at play, Brady says consumers can begin to see the costs of climate change across sectors in small ways that require some attention to detail.

“Are you seeing changes to your cooling bill? Are you seeing different things in your environment, in your yard, flowers blooming earlier? You might talk to your grandma, she says that certain bush never used to bloom in April. Maybe into the fall you’re thinking, we never used to do this in September, now we can go to the lake,” she says. “It’s these little things you take for granted don’t think about.”

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