A study published in the journal Nature last year estimated disruptions caused by warming temperatures could cost $38 trillion a year across the globe by the middle of this century. And that was before the Trump administration’s efforts to reverse progress on cutting U.S. carbon emissions.

Marketplace’s Amy Scott and the “How We Survive” team have been reporting on the ways climate change has been taking a toll on the global economy. She joined Marketplace’s Sabri Ben-Achour to discuss. The following is an edited transcript of their conversation.

Sabri Ben-Achour: How is climate change showing up in our economy?

Amy Scott: Well, of course, there's the direct cost of disaster, as anyone who has experienced recently the flooding in Texas or New Jersey, or, you know, the devastating wildfires in Southern California knows recovery is very expensive. The Trump administration has actually stopped tracking extreme weather events that cause more than $1 billion in damage, but last year, there were 27 such events, including drought, wildfires, winter storms, tropical cyclones. And the administration has also cut federal funding for climate mitigation, which is shown to actually save money in the long run. It is cheaper to prevent damage than to repair it later.

Ben-Achour: So there's the cost of fixing all the stuff that climate change-related storms break. But then there have to be indirect costs, and I'm thinking of insurance, which has been rising. Has that stabilized at all?

Scott: Yeah. So unfortunately, premiums are expected to keep rising — on average 8% this year for homeowner insurance policies. That's according to Insurify. And that's after a 20% increase the past two years. And of course, some places will see much higher increases. Like, California is projected to see more than 20% increases. And as I'm sure you know, Sabri, this isn't just from climate disasters, but also the higher building costs we've been seeing because of inflation and now tariffs and just more people living in harm's way. And experts say that that is going to increasingly show up in the housing market as whole neighborhoods just get harder and more expensive to insure.

Ben-Achour: Speaking of inflation, I mean, does climate change play a role in other kinds of inflation? I'm thinking food.

Scott: Yep. You've probably noticed higher coffee prices or chocolate prices. Oranges have gone up in price, and some of that is attributed to climate change because of the effects of warming temperatures or drought or flooding or storms on these crops. The Potsdam Institute for Climate Impact Studies and the European Central Bank recently found that climate change could increase food inflation overall by more than three percentage points per year, and that would lead to higher inflation as well of more than 1% per year by 2035. And all this is making some staples in people's diets seem more like luxuries. The upcoming season of our podcast, "How We Survive," is actually all about the future of food, and we'll be looking at some solutions. That launches in October.