Florida’s Economy Faces Climate Change Impact

TL/DR –

Florida once had a growing population and attracted many businesses due to its climate and low cost of living, but now the threat from climate change is increasingly becoming apparent. Predictions suggest up to 70% of Southeast Florida could be underwater by 2100 due to rising sea levels, and severe weather has caused insurance premiums to rise by up to 400% over five years. Despite this, many politicians and policy makers continue to downplay or deny the reality of climate change, including Former Florida Gov. Rick Scott and former President Donald Trump, potentially worsening the situation for the Floridians affected.

Florida’s Climate Change Crisis and Its Economic Impact

Once considered the fastest-growing state owing to its attractive attributes such as balmy winter weather, divine beaches, no personal income tax, and lower cost of living, Florida now faces a grim future due to climate change. The state’s attractive factors had triggered a significant migration of companies from New York, Chicago, and California between 2021 and 2023.

However, the rising threat of climate change has caused significant concern. The state has recently experienced the wrath of two monster hurricanes in two weeks, turning many Floridians into serial refugees. The National Oceanic and Atmospheric Administration predicts that by 2100, more than 30% of Southeast Florida, including much of Miami and Fort Lauderdale, could be underwater due to climate change, with more extreme scenarios suggesting figures closer to 70%.

Unfortunately, the extent of this threat has been downplayed by politicians. Reports emerged that former Florida Gov. Rick Scott banned the use of “climate change” by state government agencies. Similarly, former President Donald Trump once referred to climate change as a “hoax” created by China in a 2016 tweet.

Trump’s blueprint for another term, Project 2025, criticizes Joe Biden’s climate initiatives as “radical” and “extreme.” The project opposes the Biden administration’s promotion of “international partnerships” to address the climate crisis and the transition to a low-carbon economy.

Major oil companies such as Exxon Mobil, Occidental Petroleum, and Phillips 66 emerged in opposition to the Project’s call “to fully repeal recently passed subsidies in the tax code for green energy companies.” These companies have partly transformed into green-energy enterprises, leveraging tax credits to invest in renewable fuel, carbon capture, and hydrogen.

Meanwhile, in Florida, the insurance premiums have surged by 400% over five years due to severe weather conditions. This surge in premiums has negatively impacted the property market in the state. In addition, policies have become tougher, with higher deductibles and stricter limits on coverage, and few insurance plans cover flood damage.

Climate migrants are becoming an increasingly common phenomenon, with the First Street Foundation reporting that 3 million Americans became climate migrants between 2000 and 2020. These included people from areas far from coastlines, like Texas Hill Country, known as Flash Flood Alley.

Climate change is an imminent threat to Florida and other parts of America. Whether the crisis is confronted or not, the weather remains indifferent.

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