As extreme heat events are expected to increase in the coming years due to man-made climate change, the costs associated with a warming globe are expected to skyrocket.
This will be especially evident in Texas, according to Ray Perryman, CEO of economic research company the Perryman Group.
According to his analysis, the state's gross product is expected to decline by about $9.5 billion this summer due to extreme heat.
Almost $2 billion of the losses will come from reductions in real estate, while another $1.8 billion is expected to be lost in the insurance sector.
Agriculture is also expected to be hit with major losses, losing 5.7% of its annual revenue.
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But these losses, Perryman warns, could just be the tip of the iceberg. An average summer temperature increase of 1 degree would result in over $396 billion in losses by 2050.
"Extreme weather events such as heat waves cost the economy billions. Over a long period of time, persistent temperature increases will have even larger and more profound economic consequences," Perryman writes.
Perryman is not the only one warning of climate change's costs. Last month,the Center for American Progress issued a report suggesting extreme heat has caused health care costs to go up $1 billion per year in the U.S.
The group said heat-related illnesses are responsible for 235,000 emergency department visits and more than 56,000 hospital admissions annually.
The reports come as data from the United Nations' World Meteorological Organization released last week indicates that July 2023 will go down as the hottest month ever recorded in human history.
The U.N. said July has already recorded the hottest three-week period, the three hottest days on record, and the highest-ever sea-surface temperatures for this time of year.
