In closing out the Obama Administration’s eight years, the White House issued “Climate Change: The Fiscal Risks Facing the Federal Government” to spotlight how climate change will affect federal investments. The report suggests that climate change is an unquantified future risk. What is known is that costs for federal programs such as agriculture crop insurance, federal healthcare, fire management and coastal disaster relief will rise. The impact could be as much as $9 billion to $28 billion annually in today’s dollars by the end of the century. Simultaneously, the report suggests that climate change may cause economic output to fall, perhaps as much as an annual 4% drop in global GDP if temperatures rise 4C. The implications are that federal revenues will drop as well.
“As the climate science and economics literatures continue to advance, further collaboration between OMB, CEA, USGCRP and key Federal agencies will be necessary to ensure that our understanding of climate change risks facing the Federal Budget deepens, broadens and sharpens.”
Here’s the original Obama White House blog post.
December 1, 2016 NewTerrain.