A dry environment is crucial for several reasons: 1. Stability of Catalysts: Many catalysts, such as certain metal oxides or zeolites, can be deactivated by water. Ensuring a dry environment helps maintain the active sites of these catalysts. 2. Reaction Efficiency: Water can act as a competing reactant or solvent, which can reduce the overall efficiency of the desired reaction. 3. Selectivity: The presence of water can lead to side reactions, decreasing the selectivity for the target product.