Cascading Effects Across Sectors
Agriculture, water, energy, transportation, and more, are all affected by climate change. These sectors of our economy do not exist in isolation and are linked in increasingly complex ways. For example, water supply and energy use are completely intertwined, since water is used to generate energy, and energy is required to pump, treat, and deliver water – which means that irrigation-dependent farmers and urban dwellers are linked as well.
Heat and drought lead to cascading impacts among sectors including agriculture, water, and energy.
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A recent illustration of these interconnections took place during the widespread drought of 2011-2012 when high temperatures caused increased demand for electricity for air conditioning, which resulted in increased water withdrawal and consumption for electricity generation. Heat, increased evaporation, drier soils, and lack of rain led to higher irrigation demands, which added stress on water resources required for energy production. At the same time, low-flowing and warmer rivers threatened to suspend power plant production in several locations, reducing the options for dealing with the concurrent increase in electricity demand.
With electricity demands at all-time highs, water shortages threatened more than 3,000 megawatts of generating capacity – enough power to supply more than one million homes. As a result of the record demand and reduced supply, electricity prices spiked.