The Water-Energy Nexus: Impacts in Europe and China
As global warming intensifies, extreme weather events such as droughts have become more frequent and their economic damage more significant.
When thinking about the impact of droughts on economic activity, the agricultural sector is the first that comes to our mind. This sector is indeed highly sensitive to weather variability, with the fall in crop production being the first direct damage to water shortage. But agricultural activity is not the only one that is impacted. The energy and transport sectors are also affected by droughts, and these are the sectors we focus our analysis on in this paper.