Scientists have been telling us time and time again that Mother Nature and the earth are degrading rapidly due to the increasing pollution and global warming. The major cause of these two problems is the emission of greenhouse gases into the atmosphere. These gases form a blanket around the earth, trapping heat and contributing to climate change.
Of all the natural disasters that can wreak havoc on an economy, Darren Dohme believes that droughts are among the most damaging. When water supplies dry up, crops wither and die, businesses suffer, and people go hungry.
Droughts are becoming more common and more intense as the world warms due to climate change. In fact, it is estimated that by the end of this century, droughts will occur twice as often as they did in the late 20th century. And when they do happen, they are likely to last longer and cover a larger area.
The Impact of Droughts on the Global Economy – Explained by Darren Dohme
The United Nations has estimated that droughts already cost the world economy $6 billion per year. And as climate change causes droughts to become more frequent and intense, those costs are only going to rise.
One of the most recent and significant examples of the economic impact of drought was the drought in Australia from 2006 to 2010. That drought is estimated to have cost the Australian economy around $9.4 billion.
In the United States, the ongoing drought in California is costing farmers billions of dollars in lost revenue. The state’s agriculture industry employs hundreds of thousands of people, and if the drought continues, it could have a ripple effect throughout the entire US economy.
Darren Dohme emphasizes that droughts can also lead to increases in food prices. When crops fail, farmers are forced to sell their livestock at lower prices. This reduces the supply of meat and dairy products, driving up prices for consumers.
The lack of water can also lead to energy shortages. Hydroelectric power plants need water to generate electricity, so when rivers and reservoirs dry up, so does the power supply. This can lead to blackouts and higher electricity prices.
In addition to the direct costs of droughts, there are also indirect costs. For example, droughts often lead to an increase in wildfires. As vegetation dries out, it becomes fuel for fires that can rage out of control, destroying homes, businesses, and even whole communities. The indirect costs of the California wildfires in 2018 are estimated to be around $400 million.
What Can Be Done to Mitigate The Impact of Droughts?
There is no easy solution to the problem of drought. However, there are some steps that can be taken to lessen the impact of droughts on the global economy.
First, it is important to reduce greenhouse gas emissions to slow down the rate of climate change. This will help to reduce the number and intensity of droughts in the future.
Second, we need to better prepare for droughts by investing in infrastructure that can withstand periods of drought. This includes things like building dams and reservoirs and developing more efficient irrigation systems.
Third, we need to increase our food security by diversifying our food sources and improving our food storage and distribution systems. This will help to ensure that we have enough food to eat even during periods of drought.
And lastly, we need to provide aid to countries that are struggling to cope with the impact of drought. This includes providing financial assistance, as well as food and water supplies.
Darren Dohme believes that by taking the above-mentioned steps, we can reduce the impact of droughts on the global economy and ensure that we are better prepared for the challenges of climate change.