How Much Does Extreme Heat Cost Us?
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How Much Does Extreme Heat Cost Us?
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It’s really hot. Extreme heat is one of the more invisible – and pernicious – climate-related threats that we have to figure out how to live with. It claims 2.3 million lives every year, and reduces productivity 2-3%, for every one degree Celsius above 20 degrees. Kathy Baughman McLeod, CEO of Heat Resilience Action, has been trying for figure out what tools we can borrow from financial markets and from the world of insurance to help mitigate the economic effects. She’s created insurance for nature, helped start naming heat waves like we do for hurricanes, and created tiny insurance for laborers that pays out when it’s too hot to work – which enabled thousands of people to safely sit out of the heat without losing out on wages. Kathy shows us a useful way to think about climate risks, and how simple it can be to price them.
This episode was fact checked by Francis Carr.
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