The climate emergency is hitting California hard, leading to higher utility bills, lost jobs, and rising healthcare costs. These issues are making life even more expensive for residents. A recent report reveals that the average American born in 2024 could face an additional $500,000 in lifelong costs due to the climate crisis. Some may endure up to $1 million in costs if they suffer severe consequences.
This report, created by the Center for Law, Energy & Environment at UC Berkeley and funded by the nonprofit Next 10, analyses over 100 sources to reveal the “hidden costs” of climate change. F. Noel Perry, founder of Next 10, points out that the effects are already visible. For instance, droughts in the Central Valley hurt agricultural workers, and extreme weather is impacting healthcare access. The trend is troubling, especially since California already battles high living costs and housing prices.
California has one of the highest poverty rates in the U.S., now tied with Louisiana. Extreme weather events, fueled by climate change, are becoming more common. For example, wildfires have devastated communities in Los Angeles, resulting in $4.6 billion in GDP losses and nearly $300 million in lost wages.
Ken Alex from UC Berkeley stresses that the costs of climate change are not just future problems but immediate issues people face today, affecting everything from inflation to food prices. Between 2017 and 2021, Californians lost about $60 billion in income due to wildfires.
These wildfires also contribute to increasing electricity bills. The report notes that wildfire-related costs are responsible for up to 13% of recent hikes. Each day of extreme heat, especially at 95°F or higher, can raise electricity costs by about 1.6%.
Health costs are another serious concern. A study estimates that exposure to wildfire smoke in Southern California costs around $84.42 per person daily. By 2050, outdoor workers could lose up to $55.4 billion in future earnings due to climate impacts. In 2018 alone, the San Francisco Bay Area faced approximately $7.8 billion in health costs from wildfire smoke.
While addressing the climate crisis will require investment, ignoring it will lead to even larger expenses. Alex argues that using technology to combat climate change can actually lower costs in the long run.
The authors of the report hope to expand their research and make the climate crisis a talking point in upcoming elections. Perry emphasizes that to tackle California’s affordability crisis, we must also address the climate crisis.
You can read more about the financial implications of climate change in this report from UC Berkeley.
