Counting the Cost: Quantifying Potential Urban Economic Losses from Climate Hazards

Abstract Climate change poses significant challenges, profoundly affecting ecosystems and societies. Cities are particularly vulnerable to extreme events due to the high density of residents and critical infrastructure. Economic evaluations of climate risks are an important aspect to be included in the assessment of climate vulnerability. This research implements a multidisciplinary methodology to evaluate the potential economic losses associated with two climate hazards: heatwaves and flooding. The potential economic impacts of heatwaves are analysed using Wet Bulb Globe Temperature (WBGT) to quantify heat stress and its effect on labour productivity. Economic risks for flooding are assessed through an integrated GIS model incorporating flood risk and land use to estimate losses for different sectors. The analysis is performed at the city-scale and applied in the city of Torino. Results reveal that rising WBGT levels in Torino led to a 19.59% increase in potential losses. Additionally, potential losses from flooding decreased by 0.52%. Overall, findings reveal the growing economic toll of climate-related hazards in European cities and emphasize the necessity for a multidisciplinary approach to monitor the effectiveness of implemented strategies in reducing potential economic losses. The results of this research are an integral part of the European project GREEN-INC.