Derek Lemoine Explains How Climate Change May Be Affecting the Economy

Derek Lemoine, professor of economics in the Eller College of Management, was recently featured in Tucson.com for research showing that climate change has already had a significant impact on the U.S. economy.

In the article, Lemoine explains that climate change has reduced U.S. income by an estimated 12 percent—much more than earlier studies suggested. He notes that past research often looked only at short-term, local weather events, which made the economic effects seem relatively small. His work instead shows that when you account for long-term temperature changes happening across the entire country, the costs add up quickly.

Lemoine points out that the economic impact of climate change isn’t limited to where the weather changes occur. Because regions are connected through trade and pricing, temperature shifts in one part of the country can affect incomes elsewhere. “It’s not just about the weather where we live,” he said in the article. “When every region is affected at the same time, the economic consequences add up quickly.”

The tucson.com feature also highlights why understanding climate change as an ongoing economic factor matters. Lemoine explains that year-after-year temperature changes influence everything from productivity and energy demand to prices and regional trade, making this information especially relevant for businesses and policymakers.

With a clearer picture of how climate change is already affecting the economy, Lemoine says decision-makers can better understand where support and adaptation funding are most needed—and plan more effectively for the future.