Financial Impacts on California and U.S. Households
September 2025
The costs of climate change are enormous and affect every sector of the economy. Disasters, including hurricanes, wildfires, and heat waves, are increasing in severity, causing costly damage to property, businesses, and health. Increasing temperatures, extreme events, and other climate-related disruptions affect energy consumption, health and lead to increased costs for households and businesses.
40% of costs resulting from climate-driven extreme events between 1980 and early 2025 occurred in three states – California, Florida, and Texas. California is particularly vulnerable to climate change because of its Mediterranean climate, the economic importance of climate-vulnerable industries including agriculture, tourism, and recreation, and the seasonal nature of its precipitation patterns that affect water supply. California is already experiencing severe impacts due to climate change – all of which are expected to increase in severity over the century.
The large costs associated with climate-driven disasters communicate the magnitude of the climate crisis, but they do not provide a clear picture into how climate change increases costs for individuals, businesses, or the public sector. Climate change is affecting household utility costs, reducing workforce productivity, and resulting in lost wages.
This report summarizes available research on how climate change is affecting costs to U.S. and California households and businesses.
The report authors want to thank Next 10 for their support and partnership on this project.
Access CLEE’s full report here: Costs of Climate Change: Financial Impacts on California and U.S. Households
Contact for more information: Kasia Kosmala-Dahlbeck, Louise Bedsworth