Estimates of the long-term U.S. economic impacts of global climate change-induced drought.

While climate-change models have done a reasonable job of forecasting changes in global climate conditions over the past decades, recent data indicate that actual climate change may be much more severe. To better understand some of the potential economic impacts of these severe climate changes, Sandia economists estimated the impacts to the U.S. economy of climate change-induced impacts to U.S. precipitation over the 2010 to 2050 time period. The economists developed an impact methodology that converts changes in precipitation and water availability to changes in economic activity, and conducted simulations of economic impacts using a large-scale macroeconomic model of the U.S. economy.