Heat and drought sharply reduced European household incomes by almost 3%
Kyiv • UNN
A study by Climate Analytics showed that extreme heat and drought reduced the average income of European households by almost 3%. The poorest segments of the population suffered the most, with their incomes falling by 4%.
Extreme heat combined with drought has already reduced average household incomes in Europe by nearly 3%. This is according to a new study by Climate Analytics, reports UNN citing Daily Mail.
Details
According to researchers, the economic impact of heat is not limited to rising cooling costs or deteriorating human well-being. High temperatures affect labor productivity, health, food production, transport, energy, and water services.
The study covered data from 2004-2022. Its authors found that a heat wave alone reduces average household incomes in Europe by 0.7%, and drought by 1.8%. However, when these phenomena occur simultaneously, especially in regions already suffering from water scarcity, the average income loss rises to nearly 3%.
The most negative impact was recorded in regions that have more frequently experienced heat waves and droughts. In particular, in Madrid, income losses are estimated at nearly 10%, in central Hungary at 9.4%, and in central Spain at 8.8%.
The lead author of the study, senior economist on climate change and development at Climate Analytics, Jessie Schleipen, noted that the current heat wave in Europe is already creating threats to people's health, their incomes, and their ability to work.
According to her, when extreme heat coincides with drought, economic damages become significantly greater.
Our study shows that such combined phenomena amplify the economic losses directly borne by European households. With the intensification of global warming, they will occur more frequently
Who suffers most from drought and heat
Climate Analytics emphasizes that the impacts of heat and drought are distributed unevenly. The poorest 20% of the population bear the greatest blow: their incomes can shrink by approximately 4%, while for other groups, losses are estimated at 1.1-1.8%.
Researchers warn that further global warming could deepen inequality in Europe even more. If the temperature rises by about 2.7°C by the end of the century, which corresponds to the current trajectory of global policy, the average incomes of European households could decrease by 27%. At the same time, limiting global warming to 1.5°C, as stipulated by the Paris Climate Agreement, could reduce potential losses to about 7%.
Furthermore, under a 1.5°C warming scenario, about 60 million people in Europe could be at risk of poverty. If warming reaches 2.7°C, this number could increase to 127 million.
Context
In recent years, Europe has increasingly faced prolonged heat waves, droughts, and growing strain on energy systems. Experts warn that without adaptation of infrastructure, healthcare systems, the labor market, and the agricultural sector, the economic consequences of extreme weather will only intensify.
Recall
Earlier we wrote that heat destroys roads and paralyzes transport in Germany, and hospitals in France are operating at overload.