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The Economic effects of the California Drought

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Gloria Huynh

on 10 March 2017

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Transcript of The Economic effects of the California Drought

Energy plants-- hydroelectric power plants
cannot power tubine without water
Farmers use groundwater to sustain high levels of crop revenue

How the drought affects our economy
The Economic Effects of the California Drought
What is a Drought?
Gloria Huynh, Nicholas Ly, Danny Nguyen, Kevin Trinh
Works Cited



"Impacts of California's Ongoing Drought: Agriculture - Pacific Institute." Pacific Institute. Web. 06 June 2016.

"California Drought Impact Pegged at $2.7 Billion." Sacbee. Web. 06 June 2016.
"Drought Puts California Rice in a Sticky Situation." Drought Puts California Rice in a Sticky Situation. Web. 06 June 2016.

California's agricultural production is one of the highest in the nation despite the drought
Less decorative fountains/ grass watering
Water departments are affected as more people are choosing to conserve
Farmers change to more water-efficient methods to boost revenue
Prices for fruits, vegetables, meats, and dairies will rise
Jobs are lost
However, this supply of water is unsustainable
Approximately 17,000 in the San Joaquim and Central valley
Decrease in production of crops, especially rice (20-25%)
100,000 acres of fallowed rice fields
Farmers: 100 lb. rice ($15-20) => ($25-30+)
Households can water lawns when temperatures are lower
Semiconductor fabrication plants
Use up to 4.8 million gallons of water per day
Other Businesses
a prolonged period of abnormally low rainfall; a shortage of water resulting from this.
Causes: not recieving enough rain or snow over a period of time
Effects: restricted amount of water supply meaning a shortage of water that will most likely impact the agriculture field
Frequently check for leaky faucets or pipes around the household
invest in a dishwasher which saves more water than hand washing dishes
Decrease the time of showers and shut off faucet when brushing teeth
Desalination allows us to utilize ocean water for domestic uses through a complicated process
Future effects
Economic Impact
$2.7 billion in 2015 (5% of AAP, 0.001% California GDP)
Private water sales increase ($2200 per acre foot)
Unprofitable; Water intensive crops hurt the most

542,000 acres of uncultivated land. (+9% 2014)
Seasonal Farm Employment : -10,100 jobs
Total -21,000 jobs (truck drivers, food processing workers, e.t.c.)
Drought Domino Effect
"Direct Effect":
Water shortages
"Indirect Effects": Crops die
Farmers no money to buy tractors
Dealers lose money
Dealers cut employment
Tractor dealerships close down
Benefits of Drought
Water management technology
Plant Genetic Engineering
Full transcript