More extreme weather a risk to Texas economy, experts say

Rescue boats float on a flooded street as people are evacuated in 2017 from rising floodwaters brought on by Hurricane Harvey in Houston. Severe weather in Texas as a result of climate change may have a negative impact on the region’s long-term business prospects, economists believe. >>> Click through the gallery to see how a significant sea-level rise would impact cities along the Texas coast. less Rescue boats float on a flooded street as people are evacuated in 2017 from rising floodwaters brought on by Hurricane Harvey in Houston. Severe weather in Texas as a result of climate change may have a ... more Photo: David J. Phillip, STF / AP Photo: David J. Phillip, STF / AP Image 1 of / 57 Caption Close More extreme weather a risk to Texas economy, experts say 1 / 57 Back to Gallery

Severe weather in Texas as a result of climate change could hurt the region's economy, according to Robert Kaplan, the president of the Federal Reserve Bank of Dallas.

Hurricanes, droughts, flooding and tornadoes are increasingly common, impacting people, cities, energy infrastructure and key industries throughout Texas and the surrounding states. As a result, economists at the Dallas Fed have become increasingly aware of how severe weather in the region may adversely affect the economy, Kaplan wrote in an essay published Monday.

RELATED STUDY: Here's how much Texas cities need to spend on climate change protection

Severe weather has always been a risk in the region, particularly for coastal cities such as Houston that are frequently in the path of tropical storms. But now, as severe storms become more common, businesses and local governments have begun to make substantial capital investments to mitigate the damage of extreme weather.

Climate change could have a negative impact on the region's long-term business prospects.

Kaplan noted that as a central banker, he does not "delve into the political" or controversial aspects of climate change. However, he wrote, "climate-related trends are likely impacting economic conditions and financial stability."

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