2025 has been well known for multiple natural disasters. The year started with wildfires in Los Angeles killing 29 people, resulting in billions in damages. As many of these disasters are coming to an end, economists are totally up the potential economic toll these and others from climate change could have.
Natural Disasters Do Billions in Damages
While there still is large conflict surrounding climate change, some pro climate economists argue that protecting the environment could prevent economic damage. The Palisades fires are a prime example of this. Deborah Brosnan, climate risk scientist said “LA experienced normal fires, but compounded by prolonged drought and high temperatures – both of which are associated with climate change – the outcome was worse.”
There certainly has been a major economic toll on Southern California due to the fires. Some experts estimate the total damage reached about $164 billion in total. While the fires are now over, another risk factor is the heavy rain fall. Large amounts of rain are dropping on the now burnt land and is resulting in mudslides. Due to this, many are cautious and potentially at risk to greater environmental injury.
Lou Gritzo, chief science officer at industrial insurer FM said “it’s a good example of how all these things can play together to exacerbate the hazards that we’re all facing. And that was just the alignment of those kind of weather events. You can argue that had any one of those not been in place, the consequences would have been significantly reduced.
These compound events are very difficult to study, according to Doug Richardson, climate research scientist at the University of New South Wales. Richardson said “We need to develop our models to better account for these sorts of interactions between different climate hazards at a spatial resolution that allows us to consider how these hazards might interact.”
Potential Future Impact of Natural Disasters
Many economists worry that climate change can lead to greater flooding which can destroy homes and towns. Pro climate change individuals also point out that flooding can harm soil and vegetation, harming potential profits and economies. The opposite natural disaster in droughts can also harm economies. Bloomberg reports that without an moisture, soil is stripped of some nutrients and heats the air. This makes the weather hotter and the drought much worse.
Jakob Zscheischler, compound event researcher at the Helmholtz Centre in Germany was asked about potential economic effects of climate change. Zscheischler said “Climate change has already led to an increase in the amount of rain during such events and will continue to do so, which puts pressure on infrastructure and transnational flood management due to multiple countries being affected at the same time.” Zscheischler believes that the pressure on infrastructure could result in damages putting lives at risk.
While some believe that there is a large potential impact of climate change on the economy, others aren’t so confident. Pro-environmentalists are seeking to convince politicians like Donald Trump and others to implement pro-environmental policies. Trump however, seems to be focused on other potential policies and topics.
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