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The Economics of Weather

Weather: Recap

A recap of how weather shapes the economy.

Weather is an economic force.

Module recap

  • Weather affects most sectors.
  • Forecasts are valuable public goods.
  • Heat cuts work output.
  • Weather shapes shopping.
  • Fog disrupts transport.
  • Weather insurance pays by readings.
  • Cyclone warnings save lives.
  • Lightning is a hidden killer.
  • Urban floods have human causes.
  • Weather affects mood slightly.
  • Extremes are rising.

Lesson

Information and preparation reduce weather’s costs.

The prepared city

A city with warnings, drains and cooling centres suffers far less from extreme weather.

Thinking weather is beyond our control

Preparation reduces its costs.

Key takeaways
  • Weather shapes the economy.
  • Forecasts and warnings save money and lives.
  • Extremes are rising.
  • Preparation pays.
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