Why worry about water?

Queensland, Australia 2010

Brian Sant — 2011-10-18T14:50:00Z

The Queensland floods affected more than 70 towns and 200,000 people, ultimately leading to three-quarters of the state being declared a disaster zone. The impacts to the Australian economy included a loss of A$32 billion (equivalent to 3% of GDP) and a reconstruction budget of A$6.8 billion. Australian companies Virgin Blue and Bank of Queensland issued profit warnings directly attributed to the flooding — their share prices dropped 5.9% and 4.9%, respectively.

China 2010-2011

Brian Sant — 2011-10-18T14:50:00Z

Over the past two years, China has experienced two prolonged dry spells and frequent flooding. In 2010, droughts and floods together cost the country roughly US$22.5 billion. In June 2011, flooding in eastern and southern China killed 175 people and displaced 1.6 million, resulting in more than US$5 billion in damages and a 20% reduction in vegetable output. Meanwhile, five million hectares of farmland in western China suffered the worst drought in 50 years.

In addition, the country’s rapid industrialization and urbanization have taken a toll on water quality. In one of China’s leading economic centers, Chongqing, which sits on the banks of the Yangtze River, local officials estimate that dealing with the effects of chronic water pollution on local agriculture and public health will ultimately cost as much as 4.3% of the city’s gross annual product. Large-scale pollution events are increasingly common in China: In June 2011, carbolic acid spilled into a river that supplies drinking water to Hangzhou, knocking out supplies to more than half a million people in the suburbs and creating a run on bottled water in this city of 9 million. One month later, a manganese spill from a local plant left four million people in Sichuan Province without drinking water for over a week.

Marcal River, Hungary 2011

Brian Sant — 2011-10-18T14:50:00Z

In October, a retaining wall of the tailings pond dam at the Ajka alumina plant burst releasing an estimated 700,000 m³ of liquid waste. The disaster affected 15 square miles, killed 10 people, and injured 150. All life in local reaches of the Marcal River was extinguished and the Hungarian government has since spent US$166 million on cleanup and reconstruction. The Marcal’s link to the Danube river system meant that six other countries had to develop emergency response plans. In September 2011, the company was fined more than US$636 million.

Mississippi & Missouri River Basins 2011

Brian Sant — 2011-10-18T14:50:00Z

Residents in the Mississippi and Missouri River watersheds grappled with flooding so severe that it led the Army Corps of Engineers to implement strategic levee breaches designed to flood smaller cities in hopes of protecting more densely populated areas. This understandably controversial option had not been employed in a century. Estimated economic losses due to the flooding were US$2-4 billion.

Texas & Oklahoma 2011

Brian Sant — 2011-10-18T14:50:00Z

In the summer of 2011, Texas and Oklahoma suffered the worst drought conditions seen since the Dust Bowl. In Midland, the oil and gas capital of West Texas, less than 1/10th of an inch of rain fell between October 2010 and April 2011, leaving all three of the city’s reservoirs less than 30% full. Without rain, residents may have to raise US$140 million for a new pipeline to bring in water from elsewhere. Estimates put the cost of the drought and associated wildfires (including agricultural and livestock losses) at US$5 billion.