Publications: Notes at the Margin

Houston: A Canary in the Coal Mine (July 15, 2024)

 

In this report, I am moving away from the market margin to focus on the long term. I am making this change because the events last week in Houston have highlighted the rapidly growing threat of global warming.

 

Houston’s latest problem began when Hurricane Beryl struck on Monday, July 8. Beryl had been a severe storm as it traversed the Caribbean—at one point reaching Category 5 status. However, after crossing the Yucatan Peninsula and turning north it weakened to Category 1. Given the experience of the US Gulf Coast with far worse storms, one would think a Category 1 would only cause minor damage that could be cleared in a day or two.

 

However, six days later (this is being written on Saturday, July 13), almost one million Houston residents are still without power. Worse, they are sweltering in 100°F (38°C) heat. Recovery efforts there remain slow. There is a simple explanation for the power reliability issues in Houston: the impacts of global warming are outpacing the efforts of companies attempting to repair, upgrade, and harden generation and distribution systems.

 

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