New York's Economic Vitality at Risk
New York, America's oldest big city, is a vibrant place where millions of people raise families and build careers. It is a top destination for tourists and immigrants, and a cultural and financial center with a rich history.
Besides its iconic, priceless public places like the Statue of Liberty and the Empire State Building, Manhattan has among the world's highest-valued real estate, worth billions of dollars.
Today the city's economy is booming. The New York metropolitan's region is the largest regional economy in the United States, valued at nearly $1 trillion. A warming climate with heavy flooding and searing heat waves could take a severe economic toll.
The costs of not curbing global warming
The stakes will only get higher in the coming decades. New York is expected to add one million more people by 2030. That's like adding the entire population of Boston to the area – twice. While a rising population helps boost the economy, it also means more people and more property at risk for climate-related troubles.
Aside from the dangers to health and human life, the potential for devastating economic losses is tremendous. The city's robust economy and growing population have spurred a plethora of large development projects in vulnerable waterfront neighborhoods like Lower Manhattan's Battery Park City and Brooklyn's Williamsburg.
Much of the city's critical infrastructure, from power plants and sewage waste treatment plants to the vast transportation system, lie at low elevations, and could be severely damaged by more frequent and severe flooding, requiring extensive and costly repair or rebuilding (more on the risks of flooding in New York City).
The cost of doing nothing to combat climate change will be like losing 5 percent of GDP worldwide, according to the Stern Review on the Economics of Climate Change. Including environmental and public health damage to the equation would raise that figure to 20 percent or more.
Insurers start to calculate global warming risks
The insurance industry is already factoring in climate change in assessing risks for both homeowners and municipal investments. Cities without strong strategies in place to deal with climate change may face lower credit ratings and increased insurance costs, according to PlaNYC, the city's ambitious 'greenprint' for the future.
Homeowners in many storm-prone coastal areas have seen insurance rates skyrocket. Higher risks have prompted some insurers in eight downstate counties, including metropolitan New York, not to renew homeowners policies, according to a New York Times article (March 11, 2007).
Booming economy is a good incentive to act
The good news is that New York City's strong economy also provides the flexibility to take preventative action. Just as New York has been a world leader of industry and commerce, film and entertainment, we can now lead the way in meeting the biggest challenge of the 21st century. New Yorkers can do much through their own actions at home, at work and at the store, to make our great city even better.
New York City's bold, visionary sustainability plan won’t work without your help. Find out what you can do to help curb greenhouse gas pollution.
Sources
Hot Nights in the City: Global Warming, Sea Level Rise and the New York Metropolitan Region [PDF] (1999, Environmental Defense report).
Global warming, heat waves and unhealthy air [PDF] – Environmental Defense fact sheet
America's Flood Risk Is Heating Up: As Temperatures Rise, The Army Corps of Engineers Must Improve the Nations' Flood Control System" [PDF] (2007, Environmental Defense, National Wildlife Federation).
Climate Change: Reduce global warming emissions by more than 30% [PDF] from PlaNYC, New York City's new sustainability plan
Regional impacts: How Will Climate change Affect the New York Metropolitan Region? - Climate change Information Resources, New York Metropolitan Region, (Site accessed May 2007)
New York City Regional Heat Island Initiative – Center for Climate Systems Research: Climate Impacts Group (Site accessed May 2007)
The Real Riddle of Changing Weather: How Safe Is My Home? - The New York Times, March 11, 2007 (registration required).