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The Costs of Climate Inaction
The Costs of Climate Inaction
One of the most visible and immediate ways climate change has affectedand will
continue to affectAmericans is through extreme weather exacerbated by rising global
temperatures. Between 2005 and 2015, the annual average temperature in the United
States exceeded the 20th-century average every year, with increases ranging from 0.15
degrees Celsius to 1.81 degrees Celsius above normal.1 Moreover, the federal governments most recent National Climate Assessment concludes that as temperatures
continue to rise, extreme weather events and wildfires will increase in frequency and
intensity. Climate change will worsen heat waves, winter storms, and hurricanes. It will
exacerbate extremes in precipitation, leading to more severe droughts and wildfires in
some areas and heavier rainfall and flooding in others.2 And when the damage is done,
taxpayers will be left to pick up the bill.
Extreme weather events and wildfires not only pose real threats to human health and
safetythey put taxpayers at risk as well. Between 2005 and 2015, 93 natural disasters
in the United States caused more than $1 billion in damage each, amounting to $586
billion in total losses.3 This damage can profoundly affect state and local economies.
Even after a storm passes or a wildfire is extinguished, displaced people and shuttered
businesses impose ongoing financial burdens on communities. The U.S. Bureau of Labor
Statistics, for example, found that New Orleans lost 95,000 jobs and an estimated $2.9
billion in wages during the first 10 months after Hurricane Katrina.4
When extreme weather strikes and state and local governments are overwhelmed, the
federal government must often intervene. In the worst cases, the president can declare
an emergency or a major disaster, which releases federal funds for the damaged areas.
The Federal Emergency Management Agency, or FEMA, provides financial assistance to
local, tribal, and state governments, as well as individual households, after the president
declares an emergency or major disaster.
The Center for American Progress examined FEMA data on weather- and wildfirerelated disaster declarations between 2005 and 2015 to identify trends in FEMA disaster spending, which is funded by U.S. taxpayers. CAP found that:
Between 2005 and 2015, FEMA issued more than $67 billion in grants to assist communities and individuals devastated by extreme weather and wildfires. Overall, FEMA
spent about $200 per U.S. resident for disaster assistance during that time period.
FEMA provided the most disaster assistance to Louisiana and New York, which,
combined, received more than half of the agencys total assistance over the 10-year
period due to damage caused by Hurricane Katrina and Hurricane Sandy, respectively.
Texas, Mississippi, and New Jersey rank third through fifth for FEMA disaster spending between 2005 and 2015.
The states that received the most FEMA disaster assistance spending per capita were
Louisiana ($4,345), Mississippi ($1,607), North Dakota ($843), and New York ($807).
In North Dakota, unprecedented flooding events in 2009 and storms in 2011 caused
substantial damage, driving up per-person costs among a smaller state population.5
These findings likely underestimate the true federal costand thus the cost to taxpayersof extreme weather. FEMA provides assistance in response to the worst natural
disastersthose that triggered emergency and major disaster declarations. As a result,
the findings do not include the costs of smaller but still destructive storms, costs borne
by private insurers, and other government spending, such as the U.S. Department of
Agricultures disaster assistance program.
As the climate warms, these types of extreme weather and wildfire events could impose
an even greater burden on American communities and taxpayers. In order to prepare
for this reality, communities must invest in climate-resilient infrastructure and integrate
climate considerations into their development plans.
During this 10-year period, there were extreme weather and wildfire events in all 50
states, the District of Columbia, and several U.S. territories and throughout all seasons.
Severe storms were the most frequent cause of disaster declarations, with 470 distinct
declarations across the examined time period. Although less common than severe
storms, hurricanes caused the most damage. Between 2005 and 2015, FEMA spent
$49.5 billion on public and individual assistance to help communities recover from hurricanes. FEMA spent $12.7 billion for assistance related to severe storms over the same
10-year period. (see Table 1)
Hurricanes accounted for eight of the top-10 costliest disaster declarations between
2005 and 2010, including hurricanes Katrina, Sandy, Ike, Wilma, Rita, Gustav, Irene,
and Isaac. (see Table 2)
Accordingly, although the total assistance by state varied widely, FEMA directed significant disaster spending to states that experienced historic hurricane damage during
the period examined. These states include Louisiana and Mississippi, where Hurricane
Katrina hit hardest in 2005, and New York and New Jersey, where Hurricane Sandy
landed in 2012. (see Table 3) Nationwide, FEMA spent more than $22 billion in assistance responding to Hurricane Katrina, including allocations for states that provided
assistance related to evacuations. The agency provided nearly $16 billion in household
and public assistance grants in response to Hurricane Sandy.
TABLE 1
Hurricane
$49,510,998,900
140
Severe storm(s)
$12,663,328,304
470
Flood
$2,539,246,649
86
$1,119,387,366
32
Fire
$935,558,320
23
Snow
$595,571,150
52
Tornado
$186,143,336
10
Typhoon
$53,818,016
Mud/landslide
$32,840,499
Coastal storm
$23,765,641
Other*
$11,528,626
Freezing
$1,644,356
Drought
$73,992
$67,673,905,153
832
Total
* FEMA categorized as other a severe winter storm with flooding in Oklahoma in December 2015.
Source: Analysis of FEMA disaster spending; see methodology section. The data reflect public and individual/household assistance from the
two primary disaster declaration types: major disasters and emergencies. Disasters are listed based on FEMAs categorization, although a severe
weather event may include damage that spans different categories. For example, an event labeled severe storms may include other types of
damage such as flooding.
TABLE 2
Year
Katrina
2005
$22,602,674,466
Sandy
2012
$16,178,475,195
Ike
2008
$3,133,634,942
Rita
2005
$2,187,658,809
Wilma
2005
$1,823,470,172
Irene
2011
$1,672,921,795
Gustav
2008
$1,008,053,284
Isaac
2012
$554,126,639
Dennis
2005
$244,460,744
Dolly
2008
$104,503,836
Total
$49,509,979,882
Source: Analysis of FEMA disaster spending; see Methodology section of Erin Auel and Alison Cassady, Cost of Climate Inaction (Washington: Center
for American Progress, 2016). The data reflect public and individual/household assistance from the two primary disaster declaration types: major
disasters and emergencies.
TABLE 3
Per-capita rank
Total disaster
assistance
Total rank
Alabama
$150
15
$711,604,498
13
Alaska
$183
13
$129,549,578
39
$8
49
$51,932,817
44
Arkansas
$181
14
$522,619,249
19
California
$35
37
$1,302,294,588
Colorado
$93
24
$468,056,941
20
Connecticut
$91
25
$323,351,324
25
Delaware
$22
46
$19,413,415
49
District of Columbia
$35
36
$21,532,487
47
Florida
$142
16
$2,696,165,823
Georgia
$32
38
$306,707,402
26
Hawaii
$31
40
$42,856,714
45
Idaho
$7
51
$10,773,372
51
Illinois
$72
28
$924,194,778
Indiana
$53
32
$343,913,936
23
Iowa
$586
$1,785,388,736
Kansas
$320
$907,177,555
10
Kentucky
$125
18
$541,183,086
17
Louisiana
$4,345
$19,977,235,493
Maine
$66
30
$86,873,385
42
Maryland
$32
39
$183,720,453
37
Massachusetts
$83
26
$547,743,836
16
Michigan
$19
47
$193,000,759
36
Minnesota
$57
31
$302,911,528
27
Mississippi
$1,607
$4,750,705,397
Missouri
$131
17
$781,462,067
11
Montana
$68
29
$66,746,845
43
Nebraska
$205
10
$375,796,419
22
$8
50
$20,416,318
48
New Hampshire
$111
21
$145,443,728
38
New Jersey
$319
$2,811,219,347
New Mexico
$123
19
$248,541,544
32
New York
$807
$15,684,684,083
North Carolina
$28
42
$265,418,584
31
North Dakota
$843
$583,821,789
15
$24
44
$282,167,837
29
State
Arizona
Nevada
Ohio
Per-capita
assistance
Per-capita rank
Total disaster
assistance
Total rank
$195
12
$730,502,105
12
Oregon
$30
41
$114,983,173
40
Pennsylvania
$42
34
$534,706,541
18
Rhode Island
$99
23
$104,492,274
41
South Carolina
$82
27
$377,824,914
21
South Dakota
$325
$265,461,982
30
$99
22
$628,054,444
14
Texas
$195
11
$4,917,055,062
Utah
$12
48
$32,766,571
46
Vermont
$478
$298,586,287
28
Virginia
$25
43
$197,591,381
35
Washington
$50
33
$337,600,241
24
West Virginia
$111
20
$203,985,067
34
Wisconsin
$42
35
$236,588,943
33
Wyoming
$22
45
$12,316,613
50
State
Oklahoma
Tennessee
National total*
$216
$67,673,905,153
* The national total includes FEMA disaster assistance grants to U.S. territories. The per-capita figure reflects this national total and the population of the
United States, including its territories.
Sources: Analysis of FEMA disaster spending and U.S. Census Bureau; see methodology section. The FEMA data reflect public and individual/household
assistance from the two primary declaration types: major disasters and emergencies.
Nonhurricane events can cause significant and costly damage as well. In August 2016,
Baton Rouge, Louisiana, experienced historic flooding from torrential rainfall. As of
August 23, 2016, the floods had killed 13 people, and more than 100,000 people had
applied for federal assistance.11 Preliminary analysis from Climate Central and the
National Oceanic and Atmospheric Administration, or NOAA, found that increased
temperatures due to climate change increased the likelihood of intense downpours in
Louisiana by 40 percent.12 Floods are among the most costly extreme weather events
that can hit an area, as they can destroy large areas of property and can take a long time
to recede. Between 2005 and 2015, flooding caused eight of the 10 costliest nonhurricane disaster declarations and occurred across several different regions. (see Table 4)
Looking at the per-capita costs of extreme weather reveals that these disasters have a
profound impact on individuals and communities. Louisiana received $4,345 per person
in FEMA disaster spending between 2005 and 2015, the most of any state. Mississippi
received the second-highest amount per capitamore than $1,600. Overall, FEMA spent
about $200 per U.S. resident for disaster assistance between 2005 and 2015. (see Table 3)
TABLE 4
State affected
Year
Iowa
2008
$1,338,943,660
Colorado
2013
$415,959,426
Illinois
2010
$381,897,337
Tennessee
2010
$375,519,777
New York
2011
$371,562,748
North Dakota
2011
$329,401,583
Alabama
2011
$279,513,495
Pennsylvania
2011
$250,537,934
New York
2006
$244,635,287
Wildfires
California
2015
$232,173,729
Flooding
Severe storms and tornadoes
Flooding from Tropical Storm Lee
Source: Analysis of FEMA disaster spending; see methodology section. The data reflect public and individual/household assistance from the two
primary disaster declaration types: major disasters and emergencies.
Damage is not just limited to coastal areas. States in the central United States with
relatively small populations have been hit hard by extreme weather and subsequently
received significant assistance from FEMA. North Dakota, for example, ranks third
for per-capita FEMA assistance over the analyzed decade due largely to eight distinct
flooding events.13 Iowa ranks fifth for per-capita FEMA spending and seventh for total
spending because of severe storms that caused major statewide flooding in 2008.14
Of the 10 states with the highest per-capita spending, half are located in the central
United States. (see Table 3)
Conclusion
Extreme weather is already costing taxpayers and the federal government valuable
public dollars and resources. Americans have recognized these costs; in a 2015 New York
Times survey, 83 percent of respondents said that unmitigated climate change poses a
very or somewhat serious problem in the future.15
Because of the damage already caused to the climate, communities in the United States
and around the globe will experience more frequent and intense extreme weather
events, even if world leaders take immediate action to cut greenhouse gas emissions.
Faced with this reality, FEMA has proposed a rule that would establish a deductible for
disaster assistance in order to encourage states to make investments in resilience measures before disasters occur. This rule could incentivize states to invest in climate-smart
infrastructure to minimize the financial and human toll of extreme weather.16
The FEMA proposal is one among many efforts to push communities to better prepare for storms, floods, and other natural disastersan effort made even more urgent
because of climate changerather than focusing only on responding to a disasters
aftermath. Resilience, however, is only one prong in a coordinated response to climate
change. The world must also focus on mitigating the worst impacts of climate change
by reducing greenhouse gas emissions and transitioning the global economy to cleaner,
low-carbon forms of energy.
Methodology
CAP examined FEMA data on presidential declarations of major disasters and emergencies between 2005 and 2015. The data reflect the two primary disaster declaration types:
major disaster and emergency.17 CAP analyzed FEMA data on public and individual/
household assistance spending in response to these declarations.18 The data were last
updated on July 12, 2016.
For the per-capita analysis in Table 3, CAP used population data obtained from the U.S.
Census Bureau.19 To calculate the per-capita costs by state, CAP averaged the state population totals from 2005, 2010, and 2015. The national per-capita figure in Table 3 reflects
FEMA disaster assistance to all 50 states, the District of Columbia, and the U.S. territories.
CAP developed a methodology for excluding and including disasters to ensure the
analysis only includes declarations that reflect the types of events that could become
more common with unmitigated climate change.
We included public and individual assistance payments made in response to major
disaster declarations and emergency declarations for the following types of incidents:
coastal storms, drought, flooding, freezing, hurricanes, mudslides from flooding,
severe ice storms, severe storms, snow, tornadoes,20 typhoons, and wildfires. We
excluded public and individual assistance payments made for the following types of
incidents that occurred between 2005 and 2015: water main breaks, terrorism, explosions, earthquakes, chemical spills, tsunamis, the 2009 presidential inauguration,
bridge collapses, and volcanoes.
Erin Auel is a Research Assistant with the Energy and Environment team at the Center for
American Progress. Alison Cassady is the Director of Domestic Energy Policy at the Center.
The authors thank Charles Harper, a former intern at the Center, for his contributions to
this issue brief.
Endnotes
1 National Oceanic and Atmospheric Administration, Climate
Change at a Glance, available at https://www.ncdc.
noaa.gov/cag/time-series/us/110/0/tavg/ytd/12/20002015?base_prd=true&firstbaseyear=1901&lastbaseye
ar=2000 (last accessed August 2016).