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The Economic Lessons From Europe’s Heat Wave
“My subjective judgment is that American living standards are 20 to 30 percent higher than those in Western Europe,” writes Tyler Cowen. (Illustration by The Free Press; photo by Universal History Archive via Getty Images)
Europe is the world’s most wonderful museum, but at the end of the day I want my air-conditioning and clothes dryer.
By Tyler Cowen
07.20.25 — Tyler Cowen Must Know
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Europe is sweltering. Across France, Spain, Italy, and other parts of Western Europe, temperatures have surged past 100 degrees Fahrenheit during a brutal early-summer heat wave. For many Americans, those numbers don’t sound especially remarkable; large swaths of the United States endure similar temperatures every year. The difference is that much of Europe still lacks widespread air conditioning.

But why is that? Last year, Tyler Cowen explored this question while revisiting a belief he had held since his youth: that Western Europeans enjoyed living standards roughly comparable to those of Americans. After decades of travel and observation, he concluded that the gap had widened dramatically—and that Europe’s resistance to many of the conveniences Americans take for granted is one reason why. As the heat intensifies and panic spreads, read his column for the economic story behind Europe’s air-conditioning gap—and why the continent is increasingly a model “for its history—not for its living standards.” — The Editors, June 24, 2026

I was shocked recently to learn that more Europeans die of heat death—largely due to lack of air-conditioning—than Americans die from gunshot wounds.

I’m not saying America isn’t more dangerous in certain ways: We have higher non-gun murder rates and perilous weather patterns, among other problems. But it turns out European bureaucracy is literally deadly.

Case in point: the situation with air-conditioning on the continent.

European governments do a great deal to discourage air-conditioning, whether central AC or window units. You might need a hard-to-get permit to install an AC unit, and in Geneva you have to show a medical need for it. Or in many regions of Europe, the air conditioner might violate heritage preservation laws, or be illegal altogether. In Portofino, Italy, neighbors have been known to turn each other in for having illegal air-conditioning units. The fines can range up to €43,000, though most cases are settled out of court by a removal of the unit.

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Tyler Cowen
Tyler Cowen is Holbert L. Harris Professor of Economics at George Mason University and also Faculty Director of the Mercatus Center. He received his PhD in economics from Harvard University in 1987. His book The Great Stagnation: How America Ate the Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better was a New York Times best-seller. He was named in an Economist poll as one of the most influential economists of the last decade and Bloomberg Businessweek dubbed him "America's Hottest Economist." Foreign Policy magazine named him as one of its "Top 100 Global Thinkers" of 2011. He co-writes a blog at www.MarginalRevolution.com, hosts a podcast Conversations with Tyler, and is co-founder of an online economics education project, MRU.org. He is also director of the philanthropic project Emergent Ventures.
Tags:
Immigration
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Europe
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