Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks

Abstract Emerging systemic risks driven by climate extremes and societal vulnerabilities are causing considerable damage to supply systems and overall economies. In this study, we combined hydroclimatic hazard impact and supply-driven input-output models to develop an integrated approach for estimat...

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Main Authors: Marlon Vieira Passos, Jung-Ching Kan, Georgia Destouni, Karina Barquet, Luigia Brandimarte, Zahra Kalantari
Format: Article
Language:English
Published: Nature Portfolio 2025-08-01
Series:npj Natural Hazards
Online Access:https://doi.org/10.1038/s44304-025-00129-9
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author Marlon Vieira Passos
Jung-Ching Kan
Georgia Destouni
Karina Barquet
Luigia Brandimarte
Zahra Kalantari
author_facet Marlon Vieira Passos
Jung-Ching Kan
Georgia Destouni
Karina Barquet
Luigia Brandimarte
Zahra Kalantari
author_sort Marlon Vieira Passos
collection DOAJ
description Abstract Emerging systemic risks driven by climate extremes and societal vulnerabilities are causing considerable damage to supply systems and overall economies. In this study, we combined hydroclimatic hazard impact and supply-driven input-output models to develop an integrated approach for estimating the cascading impacts on food, electricity, and water supply associated with droughts, floods, and heatwaves. National-level results for Sweden indicate moderate to strong associations between annual supply variables and monthly climate indices (0.39 ≤ R 2 ≤ 0.62) at municipal units. Economic modeling revealed losses in key sectors, such as agriculture, energy, and insurance. The results from this economic modeling show that combined hydroclimatic hazards between 2005 and 2022 inflicted €8.4 billion of economic damage on agriculture, electricity, and insurance. Of this, flood-related damage represented the largest share, totaling €4.1 billion, followed by drought-induced supply shortages (€2.9 billion), and heatwave impacts (€2.3 billion).
format Article
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institution Kabale University
issn 2948-2100
language English
publishDate 2025-08-01
publisher Nature Portfolio
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series npj Natural Hazards
spelling doaj-art-312302cfa25e4c4d979e0c0e6f38ea9f2025-08-20T03:45:45ZengNature Portfolionpj Natural Hazards2948-21002025-08-012111210.1038/s44304-025-00129-9Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocksMarlon Vieira Passos0Jung-Ching Kan1Georgia Destouni2Karina Barquet3Luigia Brandimarte4Zahra Kalantari5Stockholm Environment InstituteStockholm Environment InstituteDepartment of Sustainable Development, Environmental Science and Engineering, KTH Royal Institute of TechnologyStockholm Environment InstituteDepartment of Sustainable Development, Environmental Science and Engineering, KTH Royal Institute of TechnologyDepartment of Sustainable Development, Environmental Science and Engineering, KTH Royal Institute of TechnologyAbstract Emerging systemic risks driven by climate extremes and societal vulnerabilities are causing considerable damage to supply systems and overall economies. In this study, we combined hydroclimatic hazard impact and supply-driven input-output models to develop an integrated approach for estimating the cascading impacts on food, electricity, and water supply associated with droughts, floods, and heatwaves. National-level results for Sweden indicate moderate to strong associations between annual supply variables and monthly climate indices (0.39 ≤ R 2 ≤ 0.62) at municipal units. Economic modeling revealed losses in key sectors, such as agriculture, energy, and insurance. The results from this economic modeling show that combined hydroclimatic hazards between 2005 and 2022 inflicted €8.4 billion of economic damage on agriculture, electricity, and insurance. Of this, flood-related damage represented the largest share, totaling €4.1 billion, followed by drought-induced supply shortages (€2.9 billion), and heatwave impacts (€2.3 billion).https://doi.org/10.1038/s44304-025-00129-9
spellingShingle Marlon Vieira Passos
Jung-Ching Kan
Georgia Destouni
Karina Barquet
Luigia Brandimarte
Zahra Kalantari
Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
npj Natural Hazards
title Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
title_full Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
title_fullStr Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
title_full_unstemmed Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
title_short Estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
title_sort estimation of cascading hydroclimatic hazard impacts on supply systems and associated economic shocks
url https://doi.org/10.1038/s44304-025-00129-9
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