3 Ways Extreme Heat Can Hurt the Economy

As dozens of cities in the West experience all-time high temperatures, 2021 is expected to have one of the hottest summers on record. The extreme heat has caused hundreds of deaths, sparked wildfires and worsened drought conditions in over a dozen states.

Business Insider cites a large body of work that links heat to economic outcomes. Here are 3 ways they say extreme heat affects the economy:

1. Extreme heat hinders growth. A 2018 study found that the economies of US states tend to grow at a slower pace during relatively hot summers. Higher summer temperatures reduce growth in many industries, and workers are less productive when it’s hotter out.

2. Higher temperatures equal lower crop yields. Extreme heat takes a toll on some crops, including corn, soybeans and cotton. The consequently lower yields could be costly for US agriculture which depends heavily on those crops.

3. High temperatures drastically increase energy use. According to a 2011 study, just one day with temperatures above 90 degrees Fahrenheit can increase annual household energy use by 0.4%. This increase in electricity use stresses electric grids which can lead to blackouts. California’s 2019 blackout cost the state an estimated $10 billion.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

The Tech-Enabled Hospital of the Future: Implications for Care Delivery
The Tech-Enabled Hospital of the Future: Implications for Care Delivery
March 12, 2026

Gone are the days when a hospital was simply a place where patients received care. Today’s hospitals are rapidly evolving into highly connected ecosystems powered by advanced technology, networked devices, and real-time data. The modern hospital is no longer confined to physical walls—it’s a dynamic digital environment where data flows seamlessly, AI supports clinical decisions,…

Read More
career
Stop Chasing Titles, Build a Career That Matters: A CAO’s Advice on Long-Term Success
March 11, 2026

Career advice in finance and accounting often centers around promotions, titles, and compensation. But in an era where professionals frequently change jobs every few years—the average American worker now stays in a role for less than four years—industries are facing growing talent shortages and reevaluating what long-term career success looks like. The question many…

Read More
Career success
A CEO’s Blueprint for Career Success: Leading with Love to Drive Performance and Culture
March 10, 2026

Leadership right now feels heavier than it did just a few years ago. Teams are stretched, expectations are high, and many employees are quietly disengaged. In fact, Gallup’s 2025 U.S. data shows that only about 31% of employees are actively engaged at work, leaving the majority feeling disconnected or indifferent. For CEOs and senior…

Read More
employer-sponsored apprenticeships
The Degree That Pays You Back: How Employer-Sponsored Apprenticeships Are Rewriting Higher Ed
March 9, 2026

Higher education is under pressure. Over the past few years, public confidence in the value of a four-year degree has declined significantly, with fewer Americans expressing a strong belief that traditional higher education delivers a worthwhile return on investment. At the same time, employers consistently report that graduates lack job-ready skills—particularly the “durable skills”…

Read More