Quantifying the economic costs of urban heat islands in the USA

The combination of global warming and urban heat islands (UHI) leads to a range of socio-economic problems, including labor productivity reduction, health burdens, and increased energy demand. While heat mitigation strategies can substantially alleviate local heat stress, practical climate mitigation policies require a careful evaluation of the benefits and costs of different heat mitigation solutions. The baseline cost of UHI without intervention is of critical importance since it serves as a reference for comparing different mitigation options and informs the unquantified economic losses that cities endure due to their UHIs. Previous economic studies have focused on the economic effects of climate change and greenhouse gas mitigations, yet a quantitative assessment of this baseline cost of UHI remains lacking due to an almost universal lack of urban representation in climate datasets. This gap limits policymakers’ ability to develop economically rational action plans to reduce urban heat stress.

This study aims to: (1) quantify the economic implications of UHI in the contiguous United States, and (2) perform a cost-benefit analysis of various mitigation strategies to develop cost-efficient heat mitigation portfolios. Using high-resolution climate data with urban climate representation and sectoral impact models, we have quantified the UHI-induced additional mortality rate, energy consumption, and labor loss. By incorporating monetization methods in econometric models, our preliminary assessment shows that UHI significantly amplifies the economic costs associated with regional heat stress. Our ongoing analyses aim to estimate the cost of implementing various urban adaptation strategies, including urban green, radiative cooling, and blue infrastructure, and provide a cost-benefit assessment to guide policymakers in designing effective urban climate adaptation plans.