High and dry: climate change, water, and the economy

The reports finds that water scarcity, exacerbated by climate change, could hinder economic growth, spur migration, and spark conflict. Yet, the negative impacts of climate change on water could be neutralized with better policy decisions, with some regions standing to improve their growth rates by up to 6% with better water resource management.

Improved water stewardship pays high economic dividends. When governments respond to water shortages by boosting efficiency and allocating even 25% of water to more highly-valued uses, such as more efficient agricultural practices, losses decline dramatically and for some regions may even vanish.

In the world’s extremely dry regions, more far-reaching policies are needed to avoid inefficient water use. Stronger policies and reforms are needed to cope with deepening climate stresses.

Policies and investments that can help lead countries to more water secure and climate-resilient economies include:

• Better planning for water resource allocation;
• Adoption of incentives to increase water efficiency; 
• and Investments in infrastructure for more secure water supplies and availability.