A report from the U.S. Drought Monitor has revealed California's drought is getting worse, and it could have a dire impact on the state's economy.
What's happening?
The drought deepened and expanded in central and southern California in January. Nearly 40% of the state was in at least a moderate drought, about a third in a severe drought, and almost 12% in an extreme drought.
Each of the areas in those drought levels grew during the month. The portion of the state experiencing an extreme drought, level three out of four, jumped from a little over 1% by the second week of the month to nearly 12% by the third week of January.
There is growing concern among experts that prolonged drought conditions, which now seem more likely in California, could have serious economic consequences.
"It can affect manufacturing, hydropower generation, job losses, crop losses, revenue losses for farmers," said Dr. Gökçe Soydemir, Foster Farms Endowed Professor at Stanislaus State University, per BakersfieldNow. "The ripple effects are higher energy costs and job losses in every sector leading to lower output overall."
Dr. Soydemir also pointed out that in just 2021 alone, the economic impact of California's drought conditions cost the state nearly $1.3 billion.
California's ongoing drought forced state officials to take radical new steps to save rainwater just a couple of years ago. Today's drought conditions also contributed to the rash of wildfires in the state in January. At least one preliminary estimate of damages from the fires has climbed to $385 million.
Why is a potentially prolonged drought in California concerning?
The Public Policy Institute of California (PPIC) has been monitoring the ripple effects of prolonged drought conditions in California. The loss in crop revenue had broad impacts on the state's economy in 2021. California has the biggest agricultural sector in the country, employing over 420,000 people and generating more than $50 billion in revenue annually.
"Crop losses do not occur in a vacuum," according to a 2022 report from the PPIC. "For instance, numerous upstream sectors supply goods and services to agriculture. Taking this into account, the drought's economic impact is estimated at $1.7 billion in revenue losses and 14,600 in lost jobs."
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All the time 💯 Other economic impacts of long periods of drought can include a jump in food prices as consumer demand can't keep up with the decreased supply. Areas of the state that rely on the beauty of California's natural landscapes and outdoor recreation to attract tourists can also be negatively impacted.
What's being done about the threat of prolonged droughts?
Even with a deluge of atmospheric rivers in early 2023, the state still found itself in the middle of a three-year drought. The state's reservoirs managed to capture over 10 million acre-feet of rainwater in December of 2022. That led to a rise in California's reservoirs from around 32% capacity to almost 55% capacity in a period of around seven weeks at the end of 2021 and the beginning of 2022.
A huge shift away from dirty energy sources and toward clean, safe, renewable options is essential. On an individual basis, this might include signing up for community solar, choosing an EV for your next vehicle, and modernizing our homes to make them less reliant on the grid for power.
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