By Gunika Dubal & Isha Sharma
Picture this: a family whose budget is already strained by escalating costs for food and energy. and then comes a prolonged heatwave, during which one of the family members falls victim to heatstroke and gets admitted to the hospital, resulting in thousands of rupees in additional, unplanned medical bills. Such situations are becoming alarmingly prevalent in many parts of the world.
When discussing climate change, people tend to talk about melting glaciers, rising sea levels, and the weather going berserk. However, one of the effects of climate change that often goes unrecognized is the increase in healthcare expenses.
The link between climate change and human health is increasingly evident. What used to be known as "rare" heat waves now happen much more regularly and with a lot greater intensity than they used to. Prolonged exposure to extreme heat can result in dehydration, heat stroke, heart attacks, and maybe even death.
Children, elderly persons, and low-income individuals have an increased risk of experiencing extreme heat. Hospitals have noted a significant increase in heat-related admissions during the summer months, resulting in increased healthcare costs.
The increased demand for health services will require the government to provide additional funding for emergency services, cooling centres, and public health programs. All of these additional costs will continue to place additional financial stress on the healthcare system.
Air pollution, often worsened by climate-related factors such as wildfires and higher temperatures, is another major contributor to rising healthcare costs. Poor air quality is linked to respiratory illnesses, including asthma, chronic obstructive pulmonary disease (COPD), and lung infections.
According to the WHO, air pollution contributes to nearly 7 million premature deaths annually, largely through diseases such as stroke, heart disease, chronic respiratory illnesses, and lung cancer.
The growing prevalence of these conditions places a significant financial burden on healthcare systems and households alike. The economic consequences extend beyond medical treatment costs.
Individuals suffering from chronic respiratory conditions may experience reduced productivity, increased absenteeism from work, and lower quality of life. Employers and governments ultimately bear these indirect costs through lost economic output and increased social welfare spending.
Climate change is also altering the spread of infectious diseases. Warmer temperatures and changing rainfall patterns create favorable conditions for disease, carrying vectors such as mosquitoes. Diseases like dengue, malaria, and chikungunya are expanding into regions that were previously less affected.
In countries such as India, where dengue outbreaks have become increasingly common, healthcare systems face recurring challenges in managing large numbers of patients. The cost of disease surveillance, prevention programs, diagnostic testing, and treatment continues to rise.
As climate conditions become more unpredictable, public health authorities may find themselves trapped in a costly cycle of responding to recurring outbreaks rather than investing in long-term solutions.
Natural disasters further amplify healthcare expenses. Floods, hurricanes, droughts, and wildfires not only cause immediate injuries but also lead to long-term physical and mental health consequences.
Communities affected by disasters often require extensive medical assistance, rehabilitation services, and psychological support. Healthcare infrastructure itself may be damaged during such events, resulting in expensive reconstruction efforts.
Since climate health emergencies are becoming more frequent, governments are often being forced to redirect resources away from critical development initiatives and toward emergency healthcare spending, thereby hindering long-term economic growth.
One often overlooked aspect of climate-related healthcare costs is its impact on mental health. Climate anxiety, displacement due to environmental disasters, and uncertainty about the future are contributing to rising rates of depression, anxiety disorders, and post-traumatic stress disorder (PTSD).
Mental health services are already underfunded in many countries, and growing demand places additional strain on healthcare budgets. The economic implications are substantial, as untreated mental health conditions can reduce workforce participation and productivity while increasing healthcare utilization.
The lack of healthcare infrastructure in developing countries makes them especially vulnerable to the health impacts of climate change. Ironically, many developing countries are low emitters of greenhouse gases.
Increased healthcare costs take limited public resources away from improving education, infrastructure, and reducing poverty, thereby creating a cycle of poorer health outcomes due to climate change, additional healthcare costs due to a worsening climate, and reduced economic development due to high healthcare costs.
While there is increasing evidence about the costs of climate-related healthcare, these costs are mostly absent from the discussion of policy and economic issues related to climate change. Most traditional climate change assessments measure damages to agriculture, energy systems, or infrastructure, but do not begin to quantify the economic losses related to health.
Such narrow assessments do not accurately reflect the total cost of inaction. Policymakers must identify health-related spending as an important aspect of planning for climate adaptation and resilience.
Addressing this challenge requires a proactive approach. Investments in clean energy and sustainable transportation can reduce air pollution and associated health costs. Urban planning strategies that incorporate green spaces and heat-resistant infrastructure can protect populations from extreme temperatures.
Strengthening disease surveillance systems and expanding healthcare capacity can improve preparedness for climate-sensitive illnesses. Importantly, governments should integrate health considerations into climate policy, ensuring that public health benefits are factored into environmental decision-making.
Businesses in the private sector do have a role to play, as they are able to support employee health initiatives while also lowering their environmental footprint. Insurance companies and healthcare providers can invest in proactive measures that will address climate-related risks before they become costly medical emergencies.
Researchers and academic institutions must continue to quantify the economic impact of climate-related health effects in order to provide information for evidence-based public policies.
The family that faces unexpected costs from a hospital visit due to heat stress during a heatwave is not experiencing a future threat from climate change; rather, they experience its impact in the present through escalating healthcare bills.
There are millions of such families all around the world who have been paying for the impact of a warming planet in the form of increased healthcare bills. The actual cost of climate change goes beyond just the temperature rise or the melting of glaciers.
In fact, it also lies in the crowded hospitals, overstressed budgets of healthcare systems, and financially stressed families due to health issues caused by climate change. If policymakers are really interested in creating resilient economies, they need to understand that climate action is not just an environmental necessity but also a healthcare and economic imperative.
(Gunika Dubal is an Intern at the Centre for Studies in Population and Development (CSPD), Christ (Deemed to be University), Delhi NCR. Dr Isha Sharma is an Assistant Professor in Economics, School of Social Sciences, and Fellow, CSPD, Christ (Deemed to be University), Delhi NCR.)
The views expressed are not necessarily those of The South Asian Times
