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    Economic Impact of Water Scarcity

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    sathvik
    Water scarcity will have significant economic impacts if not addressed. By 2025, two-thirds of the global population will face water shortages. This will increase costs for businesses and potentially force relocations. A lack of water can also lead to declines in local economies, food shortages, price inflation, and civil unrest. Solutions include improving infrastructure like desalination plants, water recycling, farming techniques, and sewage systems to boost water efficiency and allocation.

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    Economic Impact of Water Scarcity

    Uploaded by

    sathvik
    77 views2 pages
    Water scarcity will have significant economic impacts if not addressed. By 2025, two-thirds of the global population will face water shortages. This will increase costs for businesses and potentially force relocations. A lack of water can also lead to declines in local economies, food shortages, price inflation, and civil unrest. Solutions include improving infrastructure like desalination plants, water recycling, farming techniques, and sewage systems to boost water efficiency and allocation.

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    Describes the economic impact of water scarcity

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    ECONOMIC IMPACT OF WATER SCARCITY

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    Water scarcity will have significant economic impacts if not addressed. By 2025, two-thirds of the global population will face water shortages. This will increase costs for businesses and potentially force relocations. A lack of water can also lead to declines in local economies, food shortages, price inflation, and civil unrest. Solutions include improving infrastructure like desalination plants, water recycling, farming techniques, and sewage systems to boost water efficiency and allocation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    77 views2 pages

    Economic Impact of Water Scarcity

    Uploaded by

    sathvik
    Water scarcity will have significant economic impacts if not addressed. By 2025, two-thirds of the global population will face water shortages. This will increase costs for businesses and potentially force relocations. A lack of water can also lead to declines in local economies, food shortages, price inflation, and civil unrest. Solutions include improving infrastructure like desalination plants, water recycling, farming techniques, and sewage systems to boost water efficiency and allocation.

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    © All Rights Reserved
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    ECONOMIC IMPACT OF WATER SCARSITY

    If water is neglected by societies and governments, then the odds are they will
    eventually collapse. Without water, businesses ranging from family farms to
    major corporations face multiple problems, including higher costs and long-
    term viability.

    By 2025, it is projected that two-thirds of the globe’s population will face water
    shortages. Water scarcity is a new addition to our modern lexicon with
    economic implications that will alter policy-making for rich and undeveloped
    nations alike.

    CAUSES OF WATER SCARCITY-

    1. As population grows water demand increases.


    2. While the human population has more than doubled in the last 50 years,
    there has been a corresponding growth in industrialization and
    economic development which increases water usage, water ecosystems
    transformation, and a huge loss of biodiversity.
    3. Over 41% of the global population lives in river basins which are
    experiencing water stress.
    4. Agriculture accounts for 70% of freshwater usage, however
    approximately 60% is lost due to waste involving irrigation system
    leakages, inefficient application, and planting crops exceedingly thirsty
    for where they are grown.
    5. growing use and dependence on fertilizers and pesticides contributing
    to freshwater pollution.

    ECONOMIC IMPLICATIONS OF WATER SCARCITY-


    water scarcity is the impact on businesses worldwide leading to higher
    operating costs and staying competitive. For global firms controlling costs is
    difficult but it worsens when the price of water increases exponentially to
    where margins shrink precariously. This causes firms to regard water access
    as a competitive advantage and relocate when possible. For example, a firm
    will give preference to relocating to areas where water risks are lowest such
    as moving to a city located by a lake, river, or river basin.

    The lack of water will have a domino effect on communities: local commerce
    declines, incomes go down, tax revenues decrease, population declines due
    to lack of employment opportunities, cities and the surrounding communities
    shrink dangerously.

    Increases in food prices and lack of water inflame regional conflicts and cause
    population migration to where water is readily accessible. Water scarcity
    leads to food shortages while raising commodity prices thereby hindering
    trade with developing economies and in the long run cause civil unrest. Water
    scarcity has a direct impact on rain-fed and irrigated agriculture as well as
    livestock, and an indirect impact on food processing industries.

    Water scarcity impacts India, China, and the Middle East which face serious
    drought conditions thereby causing farms to reduce their crop production and
    food prices to spike dangerously.

    RECTIFICATION SOLUTIONS-

    increasing storage infrastructure through water recycling, improving farming


    practices, upgrading sewage systems, and desalination plants.

    According to the economist Richard Damania, “When governments respond


    to water shortages by boosting efficiency and allocation even 25% of water to
    more highly-valued uses, losses decline dramatically and for some regions
    may even vanish. Improved water stewardship pays high economic
    dividends.”

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