Economic Insight Report Released by NBLC, Water Shortage Could Mean Loss in Revenue and Jobs
Economic Impacts of a Water Shortage in the North Bay
December 2007
NBLC, along with the Sonoma County Water Agency (SCWA), released the second Economic Insight Report commissioned by Dr. Robert Eyler, Chair, Economics Department, Sonoma State University. The research was on the economic impacts of a possible water shortage in the North Bay region and the findings revealed that effects could impact local revenues and employment.
The economic impact of a hypothetical water shortage touches the entire economy, but biases toward businesses. In Sonoma County the industries most affected would include construction, agriculture and hospitals. In Marin County, a water shortage would most affect medical offices, financial services, and construction.
The results showed that a 30% water shortage in the North Bay's water supply would have staggering negative impacts on the region's economy. The most likely cause of such a water shortage in the North Bay's water supply would be from a regulatory effect diverting water to protect an endangered fish species or a drought.