Human response to climate change - The Global Climate System: Patterns, Processes, and Teleconnections - page 275

of the century (Riebsame et al. 1991 ). This pervasive drought created major
economic, social, and environmental impacts. There were $15 billion in losses
in the agricultural sector, but agricultural producers in non-drought areas
gained $3.6 billion from their normal crop yields and the high prices caused
by the drought. The drought totaled $40 billion in losses and costs, one of the
most costly climate anomalies of the twentieth century, but the losses were not
a major factor in the nation's economy. The GNP had a 0.4 percent downturn
attributed to the drought; the Consumer Price Index in 1988 rose 5 percent, but
economists assigned only 0.3 percent to drought effects.
Hurricane Andrew in 1992
Hurricane Andrew struck the Florida coast just south of Miami in August
1992. Costly impacts in Florida were assessed in detail to provide information
to help illustrate the importance of better preparedness to reduce vulnerability
to extreme weather events (Pielke 1995 ). Various losses and costs associated
with the storm revealed a storm total of $30 billion with $17 billion to private
property. The storm assessment pointed to various actions for better prepa-
redness and to mitigate future hurricane losses. A study of past US hurricanes
of the twentieth century, based on normalized damages of each storm (Pielke
and Landsea 1998 ), revealed that Hurricane Andrew's losses and costs were
the second highest hurricane losses, trailing only those of a 1926 hurricane
with normalized losses of $72 billion.
Midwestern floods of 1993
The Midwestern floods of 1993 inundated 10 000 square miles (26 kha) in
nine states, creating sizable economic impacts (Changnon 1996 ). The flood
was the nation's record-setting flood of all time with total losses of $20.8
billion. However, certain agricultural interests, businesses, and forms of
transportation benefited from the flood. For example, farmers in unflooded
areas with good crop yields got higher prices for their harvested crops
because the losses in the Midwest drove the prices up. Losses of $2 billion
appeared more than a year after the flood and included those resulting from
pollutants released by floodwaters, soil losses, and groundwater aquifer
damage. Although the most costly flood ever, the 1993 flood had little impact
on the nation's economy. The flood did not change the nation's gross
domestic product (GDP) in 1993. The flood did not change the 3.3 percent
rate of inflation in 1993, but the rate increased to 3.6 percent in 1994 as corn
and soybean losses in 1993 caused wholesale farm prices to rise 6 percent.
El Ni˜ o 1997-8
Unusual cold season climate conditions of 1997-8 related to a strong El Ni˜o
event created major economic impacts (Changnon 1999b ). El Ni˜o-influenced