Human response to climate change - The Global Climate System: Patterns, Processes, and Teleconnections - page 281

$11.6 billion (Bruce et al. 1999 ). Maunder ( 1986 ) carefully analyzed the
nation's economic losses due to adverse weather in the 1970s, and adjustment
of those total losses for inflation produces a value of $37.59 billion (2000
dollars). This is close to the losses calculated for all recent extremes, totaling
$35.94 billion.
Analysis of climate conditions causing the maximum loss each year during
1950-2000 revealed six conditions that rated highest in one or more years.
Energy costs were the highest value in 14 of the years; hurricane losses were
highest in 12 years; and flood losses were highest in 11 years. Crop losses
ranked first in 9 years, severe thunderstorm losses in 4 years, and windstorm
losses were highest in 1 year. Temporal distribution of the loss and gain
values revealed no significant upward or downward trend during 1950-2000.
Assessments of the economic gains due to many climate conditions have
been made (Winstanley and Changnon 2004 ). For example, the studies of the
1987-9 drought, Hurricane Andrew in 1992, and the 1993 flood revealed
economic gains ranging from 30 to 50 percent of the losses, or between $27
and $45 billion. Crop gains in years with good weather averaged $1.9 billion
annually, and energy usage reductions in mild years produced gains of $3.9
billion per year. National gains from favorable climate conditions (Table 8.4 )
average $26.32 billion per year. Annual gains exceeded total losses in 14 years
during 1950-2000.
Climate impacts and the national economy
The financial losses and gains from climate conditions were assessed against
various measures of the nation's economy. However, it must be remembered
that the losses and gains determined are mainly direct impacts measured at the
time and do not include all the delayed financial impacts that may develop
months and years after an anomalous event. Hence, the total financial impacts
of climate are somewhat greater than those shown in Table 8.4 .
The $35.9 billion annual average loss for the 1950-2000 period was
evaluated against two national economic measures. It was found to be 2
percent of the total federal expenditure in 2000 ($1.6 trillion), and 0.4 percent
of the nation's GDP for 2000 ($8.1 trillion). The highest one-year loss of
$54.4 billion during 1950-2000 rated as 3.3 percent of the 2000 federal
expenditure. Data on losses from storms and climate extremes, as reflected
in the federal disaster relief payments made since 1953, revealed loss pay-
ments totaling $54 billion for 1953-97 (Sylves 1998 ). The peak one-year
federal assistance payment for climate disasters was $7.1 billion in 1994, 0.5
percent of the 1994 federal expenditure. The Subcommittee on Natural
Disaster Reduction (SNDR 1999 ) estimated that natural disasters (climate
extremes, earthquakes, and other non-climate events) averaged $1 billion in
losses per week in the United States, only 0.7 percent of the GDP.