Costs associated with hurricane damage will increase over the next several decades as a result of climate change and coastal development, the Congressional Budget Office (CBO) estimated in a report released Thursday.
“The growth in expected hurricane damage is expected to exceed the growth in the nation’s ability to pay for such damage,” the CBO said in its report, which was prepared for Sens. Bernie Sanders (I-Vt.) and Patty Murray (D-Wash.).
The agency estimates that annual hurricane damage will rise from 0.16 percent of gross domestic product (GDP), which is about $28 billion, to 0.22 percent of GDP by 2075, which is about $39 billion in today’s economy. About 55 percent of the increase in costs is due to urban development on U.S. coasts, and the rest is due to climate change.
The CBO also predicts that over time, more people will live in areas with substantial hurricane damage.
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