IDEAS home Printed from https://ideas.repec.org/p/ags/aesc23/334519.html
   My bibliography  Save this paper

A Review of Economic Assessments of Drought Risk Reduction Approaches in Agriculture

Author

Listed:
  • Vermeulen, Sam
  • Cools, Jan
  • Staes, Jan
  • Van Passel, Steven

Abstract

Due to climate change, the frequency and intensity of droughts are expected to increase. To improve resilience to droughts, proactive drought management is essential. Economic assessments are typically included to decide on the drought risk-reducing investments to make. The choice of both methods and scope of economic assessments influences the outcome, and thus the investment choice. This paper reviews 14 actual economic assessments, evaluating the methods used based on seven criteria for economic assessments as derived from the United Nations Framework Convention on Climate Change (UNFCCC). The results show that in practice, economic assessments rarely address all criteria. Applying a limited number of criteria reduces the scope and narrows the approach, possibly leading to the underestimation of drought risk reduction approaches’ related benefits. Applying the seven criteria in practice will improve the results of economic assessments of drought risk reduction measures, allowing for optimal investment selection. Based on the different criteria, a Framework for Economic Assessments of Drought Risk-Reducing Applications (FEADRRA) is set up to aid decision-makers.

Suggested Citation

  • Vermeulen, Sam & Cools, Jan & Staes, Jan & Van Passel, Steven, 2023. "A Review of Economic Assessments of Drought Risk Reduction Approaches in Agriculture," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334519, Agricultural Economics Society - AES.
    • Handle: RePEc:ags:aesc23:334519
    DOI: 10.22004/ag.econ.334519
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/334519/files/AES2023_DroughtRiskReduction.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.334519?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sain, Gustavo & Loboguerrero, Ana María & Corner-Dolloff, Caitlin & Lizarazo, Miguel & Nowak, Andreea & Martínez-Barón, Deissy & Andrieu, Nadine, 2017. "Costs and benefits of climate-smart agriculture: The case of the Dry Corridor in Guatemala," Agricultural Systems, Elsevier, vol. 151(C), pages 163-173.
    2. 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.
    3. Matthew J Page & Joanne E McKenzie & Patrick M Bossuyt & Isabelle Boutron & Tammy C Hoffmann & Cynthia D Mulrow & Larissa Shamseer & Jennifer M Tetzlaff & Elie A Akl & Sue E Brennan & Roger Chou & Jul, 2021. "The PRISMA 2020 statement: An updated guideline for reporting systematic reviews," PLOS Medicine, Public Library of Science, vol. 18(3), pages 1-15, March.
    4. Mutenje, Munyaradzi Junia & Farnworth, Cathy Rozel & Stirling, Clare & Thierfelder, Christian & Mupangwa, Walter & Nyagumbo, Isaiah, 2019. "A cost-benefit analysis of climate-smart agriculture options in Southern Africa: Balancing gender and technology," Ecological Economics, Elsevier, vol. 163(C), pages 126-137.
    5. Pamela Berry & Fuad Yassin & Kenneth Belcher & Karl-Erich Lindenschmidt, 2017. "An Economic Assessment of Local Farm Multi-Purpose Surface Water Retention Systems under Future Climate Uncertainty," Sustainability, MDPI, vol. 9(3), pages 1-22, March.
    6. A. S. Giannikopoulou & F. K. Gad & E. Kampragou & D. Assimacopoulos, 2017. "Risk-Based Assessment of Drought Mitigation Options: the Case of Syros Island, Greece," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(2), pages 655-669, January.
    7. Pereira, Luis Santos & Oweis, Theib & Zairi, Abdelaziz, 2002. "Irrigation management under water scarcity," Agricultural Water Management, Elsevier, vol. 57(3), pages 175-206, December.
    8. Karin Sjöstrand & Andreas Lindhe & Tore Söderqvist & Peter Dahlqvist & Lars Rosén, 2019. "Marginal Abatement Cost Curves for Water Scarcity Mitigation under Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(12), pages 4335-4349, September.
    9. Alam, Khorshed, 2015. "Farmers’ adaptation to water scarcity in drought-prone environments: A case study of Rajshahi District, Bangladesh," Agricultural Water Management, Elsevier, vol. 148(C), pages 196-206.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luis Santos Pereira, 2017. "Water, Agriculture and Food: Challenges and Issues," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(10), pages 2985-2999, August.
    2. Zhang, Biao & Fu, Zetian & Wang, Jieqiong & Zhang, Lingxian, 2019. "Farmers’ adoption of water-saving irrigation technology alleviates water scarcity in metropolis suburbs: A case study of Beijing, China," Agricultural Water Management, Elsevier, vol. 212(C), pages 349-357.
    3. Thomas, B. & Patil, V. & Lele, S. & Srinivasan, V. & Eswar, M., 2018. "Adapting Or Chasing Water? Crop Choice And Farmers' Responses To Water Stress In Peri-Urban Bangalore, India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277422, International Association of Agricultural Economists.
    4. Kamila Turečková & Jan Nevima, 2020. "The Cost Benefit Analysis for the Concept of a Smart City: How to Measure the Efficiency of Smart Solutions?," Sustainability, MDPI, vol. 12(7), pages 1-17, March.
    5. Andarzian, B. & Bannayan, M. & Steduto, P. & Mazraeh, H. & Barati, M.E. & Barati, M.A. & Rahnama, A., 2011. "Validation and testing of the AquaCrop model under full and deficit irrigated wheat production in Iran," Agricultural Water Management, Elsevier, vol. 100(1), pages 1-8.
    6. Rizkiana Sidqiyatul Hamdani & Sudharto Prawata Hadi & Iwan Rudiarto, 2021. "Progress or Regress? A Systematic Review on Two Decades of Monitoring and Addressing Land Subsidence Hazards in Semarang City," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    7. Boglárka Anna Éliás & Attila Jámbor, 2021. "Food Security and COVID-19: A Systematic Review of the First-Year Experience," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    8. Heidarpour, M. & Mostafazadeh-Fard, B. & Abedi Koupai, J. & Malekian, R., 2007. "The effects of treated wastewater on soil chemical properties using subsurface and surface irrigation methods," Agricultural Water Management, Elsevier, vol. 90(1-2), pages 87-94, May.
    9. Garg, N.K. & Dadhich, Sushmita M., 2014. "Integrated non-linear model for optimal cropping pattern and irrigation scheduling under deficit irrigation," Agricultural Water Management, Elsevier, vol. 140(C), pages 1-13.
    10. Cala, Anggie & Maturana-Córdoba, Aymer & Soto-Verjel, Joseph, 2023. "Exploring the pretreatments' influence on pressure reverse osmosis: PRISMA review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    11. Araceli Martin-Candilejo & Francisco J. Martin-Carrasco & Ana Iglesias & Luis Garrote, 2023. "Heading into the Unknown? Exploring Sustainable Drought Management in the Mediterranean Region," Sustainability, MDPI, vol. 16(1), pages 1-18, December.
    12. Ming Shan & Yu-Shan Li & Bon-Gang Hwang & Jia-En Chua, 2021. "Productivity Metrics and Its Implementations in Construction Projects: A Case Study of Singapore," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    13. Susca, T. & Zanghirella, F. & Colasuonno, L. & Del Fatto, V., 2022. "Effect of green wall installation on urban heat island and building energy use: A climate-informed systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    14. Alexander P. L. Martindale & Benjamin Ng & Victoria Ngai & Aditya U. Kale & Lavinia Ferrante di Ruffano & Robert M. Golub & Gary S. Collins & David Moher & Melissa D. McCradden & Lauren Oakden-Rayner , 2024. "Concordance of randomised controlled trials for artificial intelligence interventions with the CONSORT-AI reporting guidelines," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    15. Patanè, C. & Cosentino, S.L., 2010. "Effects of soil water deficit on yield and quality of processing tomato under a Mediterranean climate," Agricultural Water Management, Elsevier, vol. 97(1), pages 131-138, January.
    16. Darouich, Hanaa & Karfoul, Razan & Ramos, Tiago B. & Moustafa, Ali & Shaheen, Baraa & Pereira, Luis S., 2021. "Crop water requirements and crop coefficients for jute mallow (Corchorus olitorius L.) using the SIMDualKc model and assessing irrigation strategies for the Syrian Akkar region," Agricultural Water Management, Elsevier, vol. 255(C).
    17. Gizéh Rangel-de Lázaro & Josep M. Duart, 2023. "You Can Handle, You Can Teach It: Systematic Review on the Use of Extended Reality and Artificial Intelligence Technologies for Online Higher Education," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    18. Islam, Zeenatul & Sabiha, Noor E & Salim, Ruhul, 2022. "Integrated environment-smart agricultural practices: A strategy towards climate-resilient agriculture," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 59-72.
    19. Abd El-Wahed, M.H. & Ali, E.A., 2013. "Effect of irrigation systems, amounts of irrigation water and mulching on corn yield, water use efficiency and net profit," Agricultural Water Management, Elsevier, vol. 120(C), pages 64-71.
    20. Pedras, C.M.G. & Pereira, L.S. & Gonalves, J.M., 2009. "MIRRIG: A decision support system for design and evaluation of microirrigation systems," Agricultural Water Management, Elsevier, vol. 96(4), pages 691-701, April.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc23:334519. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.