Intraregional shifts in destinations for seasonal visitors would move the benefits and costs of climate change among tourism sectors. Any increase in snowfall, for instance, would benefit the ski industry that is particularly vulnerable to snow-season precipitation. With regard to the potential change in hazards in general, the insurance industry would have a unique interest in shifting climatic patterns. The Southwest is particularly vulnerable to energy costs with high summer usage for the lower elevations and higher elevations experiencing higher demand in the winter. Much of this energy is imported or fossil-derived and therefore subject to carbon taxes or other national and international mitigative strategies.
Water is precious in the Southwest.
The increasing demands of urbanization for water outpace declining agricultural uses and have engendered a significant demand on the Colorado River watershed in addition to local groundwater resources. As groundwater resources are depleted, the strong hydrogeologic coupling of the Southwest has led to extraordinary surface subsidence for some areas. Long-term climatic effects on the timing, rate, duration, and total amount of precipitation could bring significant impacts. The Southwest is a net importer of food. Although some specialty crops are produced for within-state markets, most of the agricultural production is exported.