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Extreme climate events and adaptation: an exploratory analysis of drought in Mexico

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  • BOYD, ROY
  • IBARRARÃ N, MARIA E.

Abstract

Climate change is increasing the intensity of extreme weather events. Mexico is particularly prone to suffer at least two different types of these events: droughts and hurricanes. This paper focuses on the effects of an extended drought on the Mexican economy. Through a computable general equilibrium model, we simulate the impact of a drought that affects primarily agriculture, livestock, forestry, and hydropower generation. We look at the effects on the overall economy. We then simulate the effects of several adaptation strategies in (chiefly) the agricultural, forestry, and power sectors, and we arrive at some tentative yet significant conclusions. We find that the effects of such an event vary substantially by sector with moderate to severe overall impacts. Furthermore, we find that adaptation policies can only effect modest changes to the economic losses to be suffered.

Suggested Citation

  • Boyd, Roy & Ibarrarã N, Maria E., 2009. "Extreme climate events and adaptation: an exploratory analysis of drought in Mexico," Environment and Development Economics, Cambridge University Press, vol. 14(3), pages 371-395, June.
    • Handle: RePEc:cup:endeec:v:14:y:2009:i:03:p:371-395_00
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    Cited by:

    1. Wiebelt, Manfred & Breisinger, Clemens & Ecker, Olivier & Al-Riffai, Perrihan & Robertson, Richard & Thiele, Rainer, 2011. "Climate change and floods in Yemen: Impacts on food security and options for adaptation," IFPRI discussion papers 1139, International Food Policy Research Institute (IFPRI).
    2. Wenjiao Shi & Fulu Tao, 2014. "Spatio-temporal distributions of climate disasters and the response of wheat yields in China from 1983 to 2008," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 74(2), pages 569-583, November.
    3. Masato Yamazaki & Atsushi Koike & Yoshinori Sone, 2018. "A Heuristic Approach to the Estimation of Key Parameters for a Monthly, Recursive, Dynamic CGE Model," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 283-301, October.
    4. Breisinger, Clemens & Ecker, Olivier & Thiele, Rainer & Wiebelt, Manfred, 2012. "The impact of the 2008 Hadramout flash flood in Yemen on economic performance and nutrition: A simulation analysis," Kiel Working Papers 1758, Kiel Institute for the World Economy (IfW Kiel).
    5. Nicholas Kilimani & Jan van Heerden & Heinrich Bohlmann & Louise Roos, 2016. "Counting the Cost of Drought Induced Productivity Losses in an Agro-Based Economy: The Case of Uganda," Working Papers 201649, University of Pretoria, Department of Economics.
    6. Antón, Arturo & Boyd, Roy & Elizondo, Alejandra & Ibarrarán, María Eugenia, 2016. "Universal social insurance for Mexico: Modeling of a financing scheme," Economic Modelling, Elsevier, vol. 52(PB), pages 838-850.
    7. Cardenete, Manuel Alejandro & Delgado, M. Carmen, 2015. "A simulation of impact of withdrawal European funds on Andalusian economy using a dynamic CGE model: 2014–20," Economic Modelling, Elsevier, vol. 45(C), pages 83-92.
    8. Jaume Freire-González & Christopher A. Decker & Jim W. Hall, 2017. "A Scenario-Based Framework for Assessing the Economic Impacts of Potential Droughts," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-27, October.
    9. María Ibarrarán & Elizabeth Malone & Antoinette Brenkert, 2010. "Climate change vulnerability and resilience: current status and trends for Mexico," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(3), pages 365-388, June.
    10. Hoffmann, Christin, 2019. "Estimating the benefits of adaptation to extreme climate events, focusing on nonmarket damages," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    11. Pauw, Karl & Thurlow, James & van Seventer, Dirk, 2010. "Droughts and floods in Malawi," IFPRI discussion papers 962, International Food Policy Research Institute (IFPRI).
    12. Ivana Logar & Jeroen Bergh, 2013. "Methods to Assess Costs of Drought Damages and Policies for Drought Mitigation and Adaptation: Review and Recommendations," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(6), pages 1707-1720, April.
    13. Boureima Sawadogo, 2022. "Drought Impacts on the Crop Sector and Adaptation Options in Burkina Faso: A Gender-Focused Computable General Equilibrium Analysis," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    14. Jing-Li Fan & Qiao-Mei Liang & Xiao-Jie Liang & Hirokazu Tatano & Yoshio Kajitani & Yi-Ming Wei, 2014. "National vulnerability to extreme climatic events: the cases of electricity disruption in China and Japan," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 71(3), pages 1937-1956, April.
    15. Ashish Sharma & Subir Sen, 2022. "Droughts risk management strategies and determinants of preparedness: insights from Madhya Pradesh, India," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 114(2), pages 2243-2281, November.
    16. Breisinger, Clemens & Zhu, Tingju & Al Riffai, Perrihan & Nelson, Gerald & Robertson, Richard & Funes, Jose & Verner, Dorte, 2011. "Global and local economic impacts of climate change in Syria and options for adaptation:," IFPRI discussion papers 1091, International Food Policy Research Institute (IFPRI).
    17. Federica Gasbarro & Francesco Rizzi & Marco Frey, 2016. "Adaptation Measures of Energy and Utility Companies to Cope with Water Scarcity Induced by Climate Change," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 54-72, January.
    18. Maya Moore & Dennis Wesselbaum, 2023. "Climatic factors as drivers of migration: a review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 2955-2975, April.
    19. Al-Riffai, Perrihan & Breisinger, Clemens & Verner, Dorte & Zhu, Tingju, 2012. "Droughts in Syria: An Assessment of Impacts and Options for Improving the Resilience of the Poor," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(1), pages 1-29, February.
    20. Elizondo, Alejandra & Boyd, Roy, 2017. "Economic impact of ethanol promotion in Mexico: A general equilibrium analysis," Energy Policy, Elsevier, vol. 101(C), pages 293-301.
    21. Freire-González, Jaume & Decker, Christopher & Hall, Jim W., 2017. "The Economic Impacts of Droughts: A Framework for Analysis," Ecological Economics, Elsevier, vol. 132(C), pages 196-204.

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