Can we economically outgrow climate change damages? Not for hurricanes we can't
When hurricanes like Katrina in 2005 or Sandy in 2012 impact on highly populated regions they bring about tremendous damages. More than 50 percent of all weather-related economic losses on the globe are caused by damages due to tropical cyclones. Researchers from the Potsdam Institute for Climate Impact Research (PIK) now analyzed the magnitude of future hurricane losses in relation to economic growth. Showcasing the United States they found that financial losses per hurricane could triple by the end of the century in unmitigated climate change, while annual losses could on average rise by a factor of eight. Most importantly and contrary to prevalent opinion, they conclude that economic growth will not be able to counterbalance the increase in damage.