"The deadly and widespread winter storm paralyzing much of the American East with ice, snow and cold is also taking a multi-billion dollar bite out of the U.S. economy, experts figure. But how much? Economists and meteorologists are trying to get a handle on the disruption costs of winter weather disasters, which aren't as easy to calculate as buildings destroyed by hurricanes, floods and fires."
"Most economists, meteorologists and disaster experts said it's too early to put a legitimate cost estimate on the weekend storm and upcoming week of subfreezing temperatures. But the private company AccuWeather announced that its preliminary estimate for the storm that grounded 11,400 flights is between $105 billion and $115 billion - an amount six other experts scoffed at as far too high and insufficiently detailed."
A deadly winter storm paralyzed much of the American East with ice, snow and subfreezing temperatures, grounding thousands of flights and causing power outages. Economists and meteorologists note that disruption costs from winter weather are harder to quantify than direct physical destruction from hurricanes or floods. Research estimates suggest severe weather events can reduce U.S. GDP by 0.5% to 2% annually, equivalent to about $150 billion to $600 billion at a $30 trillion GDP level. AccuWeather issued a preliminary estimate of $105 billion to $115 billion for the storm, but several experts criticized that figure as too high and insufficiently detailed. Cascading effects from closed transportation hubs and failed power grids ripple across supply chains and business operations.
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