YouTube: https://youtu.be/W-Ko11mqi7Q
The White House Office of Management and Budget (OMB) released their first-ever analysis of how unchecked global warming would affect the federal budget, looking at how it could slow the economy and drive up the price of climate-related programs over time.
The report focuses on a number of major issues, including the decline in the country's economic output ('GDP') and the rising costs of various government initiatives. The overall impact? Over $2 trillion a year.
The following are the main findings of the OMB investigation.
One. The economy may contract. Quite a bit. According to the OMB, climate change might cut the country's GDP by as much as 10% by the end of the century, based on current warming patterns. This equates to a 7.1% annual revenue loss for the federal budget, or nearly $2 trillion in today's money. To put things in perspective, the planned budget for fiscal year 2023 totals $5.8 trillion.
Two. Important program costs would increase. According to the OMB, major storms, floods, wildfires, and other extreme weather events cost the United States roughly $120 billion each year in damages. The government bears some of the cost through insurance policies and post-disaster assistance. The expenses of six types of government disaster-related programs could jump anywhere from $25 to $128 billion by the end of the century if climate change continues unabated. The most significant factor is hurricane damage, which could account for as much as $94 billion in yearly coastal catastrophe costs by 2100.
Three. Many costs remain unquantified due to their ambiguity. Climate-related threats to national security, ecosystem changes, and infrastructure costs escape estimation. Additionally, this does not include the stress placed on other types of institutions. The cost to public health and businesses will add to the impact on the federal government's fiscal balance sheet, when considering impacts other than those reflected in the federal budget. The OMB intends to calculate and publish these projections on an annual basis. Their work will draw upon work previously completed by the National Oceanic and Atmospheric Administration and the Congressional Budget Office.
Other organizations also have investigated the financial benefits of combating climate change. For example, according to the most recent study from the United Nations Intergovernmental Panel on Climate Change, keeping future warming below 2 degrees Celsius (3.6 degrees Fahrenheit) would yield greater economic benefit globally than the cost of reaching that target.
In general, all these attempts seek to put a monetary cost on doing nothing. Together, they raise attention to the tradeoffs involved with acting or ignoring climate change.
