
© ©UCAR/Carlye CalvinRain, snow, and hot or cold temperatures can all have economic impacts.
Everything has its price, even the weather. New research indicates that routine weather events such as rain and cooler-than-average days can add up to an annual economic impact of as much as $485 billion in the United States.
The study, led by the National Center for Atmospheric Research (NCAR), found that finance, manufacturing, agriculture, and every other sector of the economy is sensitive to changes in the weather. The impacts can be felt in every state.
"It's clear that our economy isn't weatherproof," says NCAR economist Jeffrey Lazo, the lead author. "Even routine changes in the weather can add up to substantial impacts on the U.S. economy."
This is the first study to apply quantitative economic analysis to estimate the weather sensitivity of the entire U.S. economy. The research could help policymakers determine whether it is worthwhile to invest in enhanced forecasts and other strategies that could better protect economic activity from weather impacts.