Heat is costing Texas & the U.S. billions of dollars, studies show
NORTH TEXAS (CBSNewsTexas.com) — If you've ever felt that the heat is a draining you, you're not alone. High heat can be a major hit to productivity, which in turn can be a major hit to the economy.
Study after study shows this is the case. Take a look at key findings from a few:
The Effects of Temperature on Labor Productivity
This summer, a study published in the Annual Review of Resource Economics looked at the effects of temperature on labor productivity.
Researchers found that extreme temperatures lower work intensity and quality, and also likely increase absenteeism.
The study's abstract reads in part:
"The negative effects of extreme temperatures are widespread, and the magnitudes of the impact differ across social and economic factors. In addition to physical outputs, extreme temperatures also impair mental productivity, including cognition and learning."
Read the full study here.
Lancet Countdown on Health and Climate Change data
According to a data analysis from the Lancet Countdown on Health and Climate Change Data, heat exposure led to the loss of 2.5 billion potential labor hours in 2021. That's a 36% increase from the 1990-1999 average.
Analysis from that same report also found that in 2021, $68 billion was lost in potential income from reduced labor due to extreme heat.
Read the full study here.
Extreme Heat: The Economic and Social Consequences for the United States
American think tank Atlantic Council analyzed federal data and found that Texas accounts for almost a third of national labor losses.
Their study reads in part:
"Texas is exposed to the greatest labor productivity losses due to heat stress under baseline conditions, and, without adaptations, this will remain the case in 2050...High Texan losses can be explained by both the level of heat and composition of economic activity, with relatively high levels of outdoor work."
Read the full study here.
The High Cost of Heat
The Perryman Group, a Texas-based economic and financial analysis firm, estimates that this summer's high temperatures could cost the state $9.5 billion.
Their study shows the real estate industry suffering the largest losses, and utility companies receiving the largest gains.
The group also estimates that if these summer heat trends continue, "the effects would compound over time, with losses to the Texas economy of some $396.38 billion in real gross product in 2050."
Read the full study here.