1 minute read
Key Highlights
CHAPTER FOUR
THE COST OF DAY ZERO EVENTS
—Winston Churchill
KEY HIGHLIGHTS
• Day zero events, whereby water supplies in cities are weeks or days from running out, are becoming more frequent as migration-driven urbanization occurs at unprecedented rates and water supplies become more variable due to a changing climate.
• Although these events are concerning for many reasons, their economic impact was unknown—until now. This chapter presents new research that quantifies this impact and presents a discussion of solutions for reducing their propensity to occur.
• These events are found to be far more frequent than media reports have indicated, and the most extreme events can cost a city up to a 12 percentage point loss in gross domestic product.
• Although in some cases supply expansion through infrastructure (such as desalination plants) will be critical, truly solving this problem in the long term and in an efficient manner will require demand-side management.
This will include both scarcity pricing of water and technological solutions that reduce water use within homes and businesses.
