Persistent heat is damaging the local economy

There are sectors of the economy that could adapt to a new situation such as more and longer heat. There is here Conversion costsafter that normalization is realistic. In other sectors, permanent change is needed, such as the one that is particularly important for Austria’s economy tourism.

Agrarian “Problem”

“A big problem” would arise for agriculture, for example, if it were assumed that increasingly strong heat waves would occur from June to September and not, as was previously the case, only in the middle of summer at the end of July/beginning of August, says Scheiblecker. Many crops cannot tolerate high heat over long periods of time – especially without irrigation, which will likely become necessary more often. Switching to other products is only partially possible. More irrigation tends to make products more expensive.

Summer construction gap like before in winter and higher housing costs?

New “obstacles” will also arise for construction, but may not be sustainable. Different times for construction and more heat regulations could be necessary, according to the expert. A shift to cooler times is likely, but this could increase costs – “because it takes longer with more breaks and because more construction would have to be done in shorter phases in spring and autumn; postponements are associated with costs, later the situation could return to normal.” And: “There could be a construction hole in the summer like there is now in the winter.”

Overall, there are signs of higher energy demand, according to the Wifo economist. This is due to more and more air conditioning systems being installed. Austria would probably have to import more electricity – or could produce more via solar. When it comes to wind energy, a lot depends on investments as to whether it can fill the solar gaps. “Air conditioning systems are entirely imported, so the local economy only benefits when they are installed. On the other hand, construction and housing costs can increase as a result,” says Scheiblecker.

Summer and winter tourism

For tourism, Scheiblecker says that city trips would probably become less attractive in hot weather. In his opinion, not much would change on the lakes or in the mountains. Too much warming in winter would disrupt winter tourism, which is particularly profitable for Austria.

Higher healthcare costs

There is a risk of higher costs in the healthcare system as more hospitalizations due to heat are to be expected. “That’s not good news.”

In general and in the manufacturing sector, working conditions also depended on the respective temperature. Depending on where you work, cooling is more or less common. Where there is no air conditioning, production may be affected.