New study calculates money lost when heat stops workers

Researchers have calculated the economic damage caused by climate-change-related heat stress on the global workforce. Standard economic models use the social cost of carbon to estimate the monetary cost of emitting one extra tonne of carbon dioxide into the atmosphere. However, most of these estimates fail to account fully for the global cost of labour lost through heat stress. Abnormally hot and humid conditions pose a serious risk to health. Because of this risk, workers are forced to slow down, work fewer hours, and take more breaks, which lowers overall productivity.

Context

Climate change causes rising global temperatures that directly impact outdoor physical labor and industrial productivity. Economists and scientists constantly work to better calculate the total financial toll of a warming planet to guide policy decisions. Understanding these hidden costs helps governments and organizations plan better defenses against future climate impacts.