How extreme heat is hitting wallets

The last 11 years have been the planet's hottest on record . This changing climate is manifested in extreme weather events like heat waves and wildfires. But less obvious are the higher prices and lower wages linked to a heating world.

According to a 2026 study by the MIT Sloan School of Management and UCLA School of Law, climate change has already driven up average American household expenses by $900 (€780) a year — rising to above $1,300 for one in 10 US counties.

These costs would not exist in a world without climate change. They include escalating home insurance ($600 higher on average), increasing state and federal taxes due to disaster recovery costs or health impacts from wildfire smoke, for example.

"Climate inaction isn't just an environmental failure; it acts like a tax on every American household," wrote the researchers .

An 8-month drought in California sparked catastrophic wildfires in 2025. But heat is also burning a hole in personal wealth Image: Mike Blake/REUTERS

A 2024 report by Germany's Potsdam Institute for Climate Impact estimated that climate damages to agriculture, infrastructure, health and productivity could cost the world economy $38 trillion a year by 2050.

But how have climate-driven weather extremes already impacted salaries and household budgets?

本文の著作権はDeutsche Welleにあります。