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An Economic Drought Management Index to Evaluate Water Institutions' Performance

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  • Iglesias, Eva
  • Garrido, Alberto
  • Gomez, Almudena

Abstract

This paper proposes an Economic Drought Management Index (EDMI) that could assist water managers to inter-temporally manage water reservoirs. The index's main appeal is that it can be easily interpreted and that encompasses in a single number hydrological processes, structural constraints, water institutions' rules and the economic benefits of the customers served from the supply system. An empirical application of EDMIs is performed for two irrigation districts in Andalusia (Southern Spain), that are managed under different institutional arrangements. Results for one district show that the region's vulnerability to drought could be reduced following the interpretation of the EDMIs. For the other district, the index shows that water stocks are managed under nearly optimal criteria. This last result shows that there is an efficient level of drought vulnerability, and that increasing supply security levels would result in welfare losses.

Suggested Citation

  • Iglesias, Eva & Garrido, Alberto & Gomez, Almudena, 2002. "An Economic Drought Management Index to Evaluate Water Institutions' Performance," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24894, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24894
    DOI: 10.22004/ag.econ.24894
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    References listed on IDEAS

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    1. Varela-Ortega, Consuelo & M. Sumpsi, Jose & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, Blackwell, vol. 19(1-2), pages 193-202, September.
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