As the fourth highest gross state product in the US, Texas is a major player in the economy. With its extensive network of highways and freight railroads, the Lone Star State is a hub for manufacturing and agricultural production. But with climate change comes economic risks that could reverse the positive trends observed in the manufacturing sector in recent years. Climate change is likely to increase average temperatures in both summer and winter, resulting in more days of extreme heat each year.
This can have a range of impacts on the economy, from emergency expenses such as evacuation costs to everyday expenses such as homeowners insurance premiums and energy costs. In addition, changes in water availability and the prevalence and distribution of pests, weeds and diseases can further influence performance outcomes. The negative impact on crop productivity, especially corn and other raw materials grown in Texas and other parts of the US, can have a ripple effect on the entire country's economy. Private insurers are also limiting coverage in a growing number of areas due to the acceleration of risks and damage caused by climate change. Business and political leaders in Texas can play a critical role in modeling strong climate resilience and reducing emissions, while boosting the US economy and overall health.
This report identifies the economic risks posed by a changing climate in 11 southeastern states and Texas, as well as risks to the manufacturing industry. Climate change is an ever-growing threat to our economy, with its effects being felt across all sectors. In Northern Texas, this is especially true due to its reliance on agriculture and manufacturing. As temperatures rise, so too do energy costs, insurance premiums, and crop productivity. This can have a devastating effect on businesses, leading to decreased profits and job losses.
In addition to these direct economic impacts, climate change also poses indirect risks to businesses. For example, extreme weather events such as floods or droughts can disrupt supply chains or damage infrastructure. This can lead to increased costs for businesses as they try to recover from these events. Fortunately, there are steps that business and political leaders in Northern Texas can take to mitigate these risks. By investing in renewable energy sources such as solar or wind power, businesses can reduce their reliance on fossil fuels and lower their energy costs.
Additionally, investing in infrastructure improvements such as flood control systems or drought-resistant crops can help protect businesses from extreme weather events. Climate change is an ever-present threat to our economy, but with proper planning and investment it doesn't have to be an insurmountable one. By taking steps to reduce emissions and invest in renewable energy sources, businesses in Northern Texas can protect themselves from the economic risks posed by climate change.
