insurance

Cheaper Electric Cars | Earth Wise

January 18, 2022 By EarthWise 1 Comment

The price of the batteries that power electric cars has fallen by about 90% since 2010. This continuing trend will eventually make EVs less expensive than gas cars.

For many years, researchers have estimated that when battery packs reach the price of $100 per kilowatt-hour of energy storage, electric cars will cost about the same as gasoline-powered vehicles. In 2021, the average price of lithium-ion battery packs fell to $132 per kilowatt-hour, down 6% from the previous year. According to analysts, batteries should hit the average of $100 as soon as 2024.

It is not the case that as soon as the $100 level is reached, EVs will abruptly reach cost parity. Across different manufacturers and vehicle types, the price shift will occur at different rates. However, by the time batteries reach $60 a kilowatt-hour, EVs will be cheaper than equivalent gasoline models across every vehicle segment.

It is not known exactly when EVs will cost less than gasoline models, but there is little doubt that this point is coming. We have only been talking about the purchase price of a new vehicle. When one looks at the total cost of ownership of a vehicle, including fuel, insurance, maintenance, and depreciation, it is a different story.

Because of savings on fuel and maintenance, EVs are already in many if not most cases cheaper to own than gas-powered cars. The Department of Energy provides an online calculator to help consumers estimate the cost differences between gasoline and electricity.

In any case, the number of electric cars on the market is increasing and the number of gas-powered cars will be shrinking. Sooner or later, we will all drive electric.

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Inside Clean Energy: Batteries Got Cheaper in 2021. So How Close Are We to EVs That Cost Less than Gasoline Vehicles?

Photo, posted July 29, 2017, courtesy of Steve Jurvetson via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

The Changing Climate Is Changing Insurance

October 21, 2020 By EarthWise Leave a Comment

As the climate changes, wildfires get bigger and more destructive and hurricanes and powerful storms are more frequent and damaging. In places where these things are occurring, it is getting harder and more expensive for many homeowners to get insurance. The affordability of home insurance in the face of climate change has become a huge issue in many states.

In California, the number of homeowners who got non-renewal notices from their insurance companies rose by 6% between 2017 and 2018. In areas directly affected by wildfires between 2015 and 2017, that number jumped by 10%. Similar things have happened in Florida, Louisiana, Mississippi, and Texas, where hurricanes and flooding have caused extensive damage. Because of this, many homeowners have been forced to turn to bare-bone plans such as the California Fair Access to Insurance Plan, which can cost two or three times as much as normal insurance policies.

According to a 2019 survey of insurance companies, more than half of insurance regulators said that climate change was likely to have a high impact or an extremely high impact on the availability of insurance coverage and the assumptions used for underwriting. In the past, governments have been able to mandate coverage in certain areas or even provide coverage themselves in some cases. As the occurrence of climate-related damage becomes increasingly frequent, homeowners have to face up to a grim reality.

The challenges of dealing with wildfires, floods, powerful storms, and the like are significant enough for people who live in high-risk areas. Increasingly, home insurance in these places is becoming much more expensive, harder to find, and is worth less.

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As Climate Impacts Worsen, Homeowners Struggle to Find Affordable Insurance

Photo, posted September 1, 2020, courtesy of The National Guard via Flickr.

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Recovering Marine Life By 2050 | Earth Wise

May 27, 2020 By EarthWise Leave a Comment

Marine life has faced challenges for a long time. There have been centuries of overfishing in many places and pollution of various types has been especially harmful in recent decades. But despite all of this, a new scientific review published in the journal Nature contends that marine life in the world’s oceans could be fully restored in as little as 30 years provided that aggressive conservation policies are adopted.

The research spotlights the strong resiliency of ocean animals and cites the successful recovery of a number of marine species, including humpback whales.

The study indicates that nations around the world must agree to designate 20 to 30 percent of the oceans as marine protected areas, institute sustainable fishing guidelines, and regulate pollution. These measures would not come cheaply. The estimated cost would be around $20 billion a year.

However, the report also estimates that the economic return on this investment would be tenfold and would create millions of new jobs. Rebuilding fish stocks and maintaining sustainable fishing policies could increase global profits of the seafood industry by over $50 billion a year. Conserving coastal wetlands could save the insurance industry more than $50 billion a year as well by reducing storm damage.

A major sticking point, however, is climate change. Climate change is increasing ocean temperatures and driving acidification. Unless these changes are brought under control, the restoration of marine life is not going to be successful. We have reached the point where it is within our power to choose between a future with a resilient and vibrant ocean or an irreversibly disrupted ocean. Whether we embrace that challenge remains to be seen.

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Marine Life Could Recover By 2050 With the Right Policies, Study Finds

Photo, posted April 20, 2012, courtesy of Matthias Hiltner via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Intense Rainfall And Crops

July 2, 2019 By EarthWise Leave a Comment

The warming of the planet does not necessarily imply local weather will be warmer or drier than average. While heatwaves and droughts are increasingly common events in many places, so are intense rain events.

A new study led by scientists at the University of Illinois has found that intense rainfall is as damaging to the U.S. agricultural sector as heatwaves and excessive droughts.

The study examined more than three decades of crop insurance, climate, soil, and corn yield data. Researchers found that since 1981, corn yields in the U.S. Midwest were reduced by as much as 34% during years with excessive rainfall. Years with drought and heatwaves experienced yield losses of up to 37%.

Intense rain events can physically damage crops, delay planting and harvesting, restrict root growth, and cause oxygen deficiency and nutrient loss. The study estimated that between 1989 and 2016, excessive rainfall caused $10 billion in agricultural losses. However, excessive rainfall can have either negative or positive impact on crop yield and the effects can vary regionally.

Parts of the Midwest have already experienced a 42% increase in the heaviest precipitation events since 1958. Climate change models predict that much of this region will experience even more frequent and intense precipitation events in the coming decade.

According to the study, excessive rainfall is the major cause of crop damage currently in the U.S. for corn, and also has broad impacts for other staple crops such as soybeans and wheat. The authors suggest that as rainfall becomes more extreme, reforms will be needed in the U.S. crop insurance industry in order to better meet planting challenges faced by farmers.

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Intense Rainfall Is As Damaging to Crops As Heatwaves and Drought, and Climate Change Is Making It Worse

Photo, posted October 2, 2013, courtesy of the United Soybean Board via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Climate Change And Insurance

May 17, 2019 By EarthWise Leave a Comment

While there are still some people who remain dubious about the reality of climate change, insurance companies are not among them. And, in fact, insurers are warning that climate change could make coverage for ordinary people unaffordable.

Munich Reinsurance, the world’s largest reinsurance firm, blamed global warming for $24 billion in losses from California’s recent wildfires. Such costs could soon be widely felt as premium rises are already under discussion with insurance companies having clients in vulnerable parts of the state.

With the risk from wildfires, flooding, storms and hail increasing, the only sustainable option for the insurance industry is to adjust risk prices accordingly. Ultimately, this may become a social issue. Affordability of insurance is critical because if rates go up too much, many people on low and average incomes in some regions may no longer be able to buy insurance.

The great majority of California’s 20 worst forest fires since the 1930’s has occurred since the year 2000 driven by abnormally high summer temperatures and persistent drought. The reinsurance giant analyzed decades of data with climate models and concluded that the fires are likely driven by climate change.

It isn’t just wildfires. Insurance premiums are also being adjusted in regions facing an increased threat from severe convective storms whose energy and severity are driven by global warming. These include parts of Germany, Austria, France, southwest Italy, and the U.S. Midwest.

Linking extreme weather events to climate change is a bit like attributing the performance of a steroid-using athlete to drug use. The connections are clearer in patterns than in individual disasters. But the pattern these days is pretty clear.

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Climate Change Could Make Insurance Unaffordable for Most People

Photo, posted June 12, 2013, courtesy of Jeff Head via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Building For Climate Change

May 13, 2019 By EarthWise Leave a Comment

The manifestations of climate change are creating increasingly familiar images: floodwaters rising up house windows, charred buildings in the wake of wildfires, and homes and businesses demolished by storm winds. As these sorts of calamities become ever more common, changes to how houses are built are going to be necessary.

How can homes become more resilient against severe and unpredictable weather?

Research at Carlton University’s Sprott School of Business looks at this issue.

As an example, houses can be framed and finished in certain ways that help protect them from wind and flooding. But such methods are currently only happening in the custom-build fringes of the housing sector. Widespread adoption will require, at the minimum, significant changes to building codes.

Revising building codes is not an easy matter. The codes themselves are highly technical and complex, and beyond that, the process Is often politicized.

Even simple things like hurricane ties, which are small pieces of hardware that prevent a roof from lifting during a severe wind are not now included in building codes. Insurance companies support their use as inexpensive protection for houses. But even though the overall cost is relatively minor, the building industry pushes back at the additional expense.

The need to reduce carbon emissions has created a push for sustainable housing. But the increasingly erratic weather means that houses also need resilience and adaptation. These features will inevitably add costs and incorporating them into building codes requires producing convincing business cases.

The U.S. experienced 394 natural catastrophe events last year costing $225 billion in damage. Finding ways to make homes and businesses more resilient is not just a good idea; it is essential.

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How to Start Weather-Proofing Homes for Unpredictable Weather

Photo, posted June 12, 2008, courtesy of U.S. Geological Survey via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

A Disastrous Year

February 5, 2019 By EarthWise Leave a Comment

The number and economic impact of natural disasters around the world have increased dramatically over the past 30 years. In dollar terms, the amount has actually more than doubled. While 2017 and especially 2011 hold the records for worldwide economic damage, 2018 was pretty disastrous in its own right, totaling at least $160 billion.

The year was dominated by costly wildfires in California and tropical storms in the United States and Asia. According to a recent report by the reinsurance company Munich Re, the Camp and Woolsey fires in California alone caused losses of $21.7 billion, $16.5 billion of which was insured.

Overall, insurance companies paid out $80 billion in damage claims from natural disasters last year. This was less than the $140 billion in 2017 but is still double the 30-year average.

Losses from wildfires have increased dramatically in recent years and summers continue to get hotter and dryer, a likely consequence of climate change. These mounting costs bring into question whether people can continue to build in high-risk wildfire areas without dramatic changes in materials and the aggressive use of other protective measures.

Twenty-nine natural disaster events in 2018 caused more than a billion dollars in damage each. Tropical storms including hurricanes Michael and Florence in the United States and three Asian typhoons caused $57 billion in damage.

A severe drought in Europe that set off major wildfires and caused agricultural losses caused $3.9 billion in losses. Only about $280 million of this damage was covered by insurance companies since farmers in Europe don’t typically purchase insurance against drought. For them, 2018 was truly a disastrous year.

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Natural Disasters Caused $160 Billion in Damage in 2018

Photo, posted July 26, 2018, courtesy of Bureau of Land Management California via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Upgrading The Doomsday Seed Vault

April 11, 2018 By EarthWise Leave a Comment

The Svalbard Global Seed Vault, located nearly 400 feet beneath the earth’s surface and fully funded by the Norwegian government, offers any government access to seeds in case of natural or man-made disaster. It’s more often referred to as the Doomsday Seed Vault. And ironically, it too is threatened by climate change.