Extreme Heat’s Impact on the Economy

Extreme heat or heat waves affect the economy in several ways. Firstly, productivity is significantly impacted as it becomes harder to work in hot conditions. It is estimated that by 2030, around 2% of working hours will be lost due to extreme heat. Industries such as construction and agriculture are most affected, both in terms of productivity and operation. Construction materials and crops do not perform well in extreme heat. Currently, very few countries have set maximum temperatures for outdoor work in extreme heat, but there are calls for more regulations. Other measures being considered include working during cooler times of the day, using cooling systems, and providing covers. One notable impact of extreme heat is the increase in accidents across various sectors, as our cognitive abilities decline in hot conditions.