“Business as usual” could lead to 13% loss in growth for the Canadian economy.

According to a study published in August by both the National Bureau of Economic Research and by  U.K.’s Cambridge University Institute for New Economic Thinking,      the overall the global economy could shrink by 7% unless the world’s nations meet the Paris Agreement targets for GHG emissions reductions. Long-Term Macroeconomic Effects of Climate Change: A Cross-Country Analysis” analyses data from 174 countries over the years 1960 to 2014 to model changes in output growth related to temperature and precipitation. The result: “Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04°C per year, in the absence of mitigation policies, reduces world real GDP per capita by 7.22 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01°C per annum, reduces the loss substantially to 1.07 percent.”

The effects differ widely across countries. For Canada, the analysis finds that a “business as usual” scenario could result in a 13% loss in growth for the Canadian economy.     A summary for non-economists from the Climate News Network  quotes one of the authors of the study: “The idea that rich, temperate nations are economically immune to climate change, or could even double or triple their wealth as a result, just seems implausible.”

 

More proof that green buildings are better for workers

The health impact of  green workplaces was the subject of a new article,   The Impact of Working in a Green Certified Building on Cognitive Function and Health  , by researchers at the  Harvard T.H. Chan School of Public Health and SUNY Upstate Medical University. Researchers studied 109 workers at 10 buildings and found that employees who worked in certified green buildings had higher cognitive function scores, fewer sick building symptoms and higher sleep quality scores than those working in non-certified buildings.  The research was sponsored by United Technologies.  For an overview of ongoing research at the Harvard T.H. Chan School of Public Health , go to its Nature, Health and the Built Environment website . Other related information is available at the World Green Building Council’s “Better Places for People” website .

From a management point of view, an article in the Harvard Business Review, “Air Pollution making office workers less productive”  (September 29) reports on the effect of air pollution on call-center workers at Ctrip, China’s largest travel agency. The authors conclude that these office  workers are 5%–6% more productive when air pollution levels are rated as “good” (an Air Quality Index of 0–50) versus when they are rated as unhealthy (an Air Quality Index of 150–200). Productivity was measured by completed calls each day, length of breaks, and time logged in.

All this points to the importance of green building.  World Green Building Week  began on September 26, 2016 – preceded by an agreement amongst the national green building councils from 10 countries (including Canada)  to adopt zero net carbon certification programs by the end of 2017.  See the World Green Building Council press release for a description of the meetings, including the definition of “zero net carbon” (ZNC)  as advanced by the architectural network, Architecture 2030   .

Low-wage workers, Women, and Migrant workers will suffer most from Climate change-induced heat

Climate Change and Labour: Impacts of Heat in the Workplace   identifies heavy labour and low-skill agricultural and manufacturing jobs as the most susceptible to heat changes caused by climate change.  India, Indonesia, Pakistan, Cambodia, Nigeria, Burkina Faso and part of West Africa are the countries most at risk. Quoting the IPCC’s 5th Assessment Report, it states that “labour productivity impacts could result in output reductions in affected sectors exceeding 20% during the second half of the century–the global economic cost of reduced productivity may be more than 2 trillion USD by 2030.” Even if countries meet their Paris emissions reductions targets, rising temperatures may cut up to 10 percent of the daytime working hours in developing countries.

On the human scale, the authors surveyed more than 100 studies in the last decade which document the health risks and labour productivity loss experienced by workers in hot locations- most recently, 2016 studies from India which concluded that 87% of workers experience health problems during the hottest 3 months, and which highlighted additional problems for pregnant women workers and migrant workers.

Several important indirect effects of heat stress include: alteration of work hours to avoid the heat of the day; the need to work longer hours to earn the same pay for those whose productivity falls due to heat stress, or suffer income loss; increased exposure to hazardous chemicals when workplace chemicals evaporate more quickly in higher temperatures; and possible exposure to new vector-borne diseases.  The report calls for protection for workers , including low cost measures such as assured access to drinking water in workplaces, frequent rest breaks, and management of output targets, incorporating  protection of income and other conditions of Decent Work.

At the regulatory level,  the most relevant standard cited was adopted by the ILO in November 2015:  “Guidelines for a just transition towards environmentally sustainable economies and societies for all”,    which includes occupational safety and health and social protection policies which call on social partners “to conduct assessments of increased or new OSH risks resulting from climate change; improve, adapt or develop and create awareness of OSH standards for technologies and work processes related to the transition; and review policies concerning the protection of workers.”

The report was as a joint effort coordinated by the Climate Vulnerable Forum (CVF), supported by the United Nations Development Programme (UNDP) Secretariat and in partnership with the International Labour Organization (ILO), UNI Global Union (UNI), the International Organization of Employers (IOE), the International Trade Union Confederation (ITUC), the World Health Organization (WHO), the International Organization for Migration (IOM) and the NGO network ACT Alliance. See The Guardian for a summary .

Productivity Loss due to Workplace Heat Stress: an Issue for North America, too

In an article appearing in Our World, a publication of the United Nations University, author Tord Kjellstrom argues that economists need to consider the impact of the physiological limits of people exposed to ambient heat when they work.

His article reviews the literature to date on this issue, and contends that climate change is resulting in huge financial losses because of reduced labour productivity: estimated in 2012 as approximately US$2 trillion globally by 2030. High temperatures are already having an impact in tropical and sub-tropical countries, as well as the southern U.S. and Europe, and Australia.

How relevant is this to North America? In 2014, as part of the Risky Business project, the American Climate Prospectus included a chapter on labour productivity, which projected that heat-related losses of labour productivity in 2050 and 2090 in the United States would be the largest actual economic cost of climate change – amounting to approximately 0.2 percent of GDP in 2050. And in October 2014, an article in the Journal of the American Medical Association found that “By 2050, many US cities may experience more frequent extreme heat days. For example, New York and Milwaukee may have 3 times their current average number of days hotter than 32°C (90°F)…The adverse health aspects related to climate change may include heat-related disorders, such as heat stress and economic consequences of reduced work capacity”. The article continues to list many other adverse health outcomes and the implications for physicians. Wor

LINKS:

“Productivity Losses Ignored in Economic Analysis of Climate Change” in Our World (September 23, 2014) at: http://ourworld.unu.edu/en/productivity-losses-ignored-in-economic-analysis-of-climate-change

American Climate Prospectus: Economic Risks in the United States (June, updated August 2014) at: http://rhg.com/reports/climate-prospectus

“Climate Change Challenges and Opportunities for Global Health” in the Journal of the American Medical Association (JAMA) at: http://jama.jamanetwork.com/article.aspx?articleid=1909928

For more, see the Hothaps website at: http://www.climatechip.org/. Hothaps = High Occupational Temperature: Health and Productivity Suppression, an international research program which studies “the effects of heat exposure on working people (including gender aspects and effects on pregnant women and on children), to quantify climate change-related increases in workplace heat exposures and the impact this will have on human health and productivity”.