Extreme Heat Will Stifle US Economy, Fed Study Says
- San Francisco Fed study shows rising heat’s long-term impact
- Biggest economic effect seen to come from construction sector
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Extreme heat is set to stifle the US economy by limiting construction workers’ productivity and reducing capital investment, according to a study from the Federal Reserve Bank of San Francisco.
The construction sector is likely to determine the overall vulnerability of US production to extreme heat, because of the industry’s significant contribution to economic output and its substantial share of outdoor workers, said the paper, which examined the impact on capital stock, or the value of accumulated investment.