Heatwaves

Economic Impacts of a Heatwave

• A heatwave can be devastating to farmers and their crops, for the heat can cause the crops to wilt and die.
• A heatwave causes major heat which wreaks havoc on power grids and infrastructure, which causes electricity consumption to go up, which makes electricity prices go up.
• Most people's houses are not air conditioned, so they would leave their houses and go to cooler places, such as shopping centres, which would generate more money for retailers and restaurants.
• Due to the higher level of insurance claims of economic loss (and even people dying), insurance premiums would rise, which affects the whole economy
• Water consumption would rise as people would water their gardens and drink more, thus water levels in dams may drop, leading to water restrictions, especially in times of drought.