Covid and the war in Ukraine have worsened inflation. These totally unplanned and unexpected causes are grabbing the headlines. Yet, few realized how much climate change is responsible for inflation.
We know global warming is increasing the severity of our weather — more floods, wildfires, droughts, extreme heat waves — reducing production and leading to higher food prices. The costs to mitigate the impact of severe weather, such as rebuilding or relocating homes and businesses, add to inflation. Insurance costs are rising due to increased risk of damage due to extreme weather.
Clearly, replacing fossil fuels with renewables would reduce climate-caused inflation. The quickest and most efficient policy to move us away from fossil fuels would be a carbon fee with revenues going back to households to cover any increase in fuel costs. Ask your congressional representative to support a carbon fee and dividend program.