Study: 43 billion euros in economic damage due to the extreme weather of last summer in Europe

The heat waves, droughts and floods that ravaged Europe last summer led to an economic loss of an estimated 43 billion euros in the short term. This is apparent from one study from the University of Mannheim, in collaboration with economists from the European Central Bank.

The researchers looked at the price of climate change in the broad sense of the word: from direct and tangible consequences such as the destruction of homes and destruction of harvesting, to indirect consequences such as disruptions on the track and the loss of labor productivity at high temperatures.

The study was conducted on the basis of an analysis of both meteorological data and economic models. Taking into account all factors, the researchers estimate that the macro-economic costs as a result of the weather conditions of last summer can amount to 126 billion euros by 2029.

The researchers call the results “conservative”, since, among other things, the record-breaking forest fires that ravaged Southern Europe last month were not taken into consideration.

Unevenly distributed

Regions with low incomes or high temperatures are being hit harder. Spain, France and Italy, who had to deal with heat waves and drought last summer,, according to the study this year, each loses more than 10 billion euros. In the medium term, the costs could amount to more than 30 billion euros.

Less damage has been suffered in Central and Northern Europe. However, floods are increasingly common there, so that the costs of climate change are also expected to increase in these countries.

The researchers see that extreme again in the long term can also print labor production, for example due to loss of employment. Four years after a period of drought, the regional GDP is on average 3 percentage points lower than before, in the case of a flood that is an average of 2.8 percentage points.

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