Sichuan's rolling blackouts pose litmus test for China economy - Nikkei Asia
Sichuan's rolling blackouts pose litmus test for China economy - Nikkei Asia
CHENGDU, China -- Sichuan province began rotating outages as sweltering temperatures boost demand for electricity while drought threatens supplies in the region dependent on hydropower.
The measures taken by the inland province are expected to serve as a yardstick for China as a whole, with Beijing making an all-out effort to ensure power supplies can keep up with demand amid heat waves.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”