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Coping with Drought Risk in Agriculture and Water Supply Systems pp 133–151Cite as

Risk Management Instruments Supporting Drought Planning and Policy

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Part of the book series: Advances in Natural and Technological Hazards Research ((NTHR,volume 26))

Abstract

This chapter looks at the role of risk-sharing mechanisms to help alleviate and reduce the economic and social consequences of droughts and water scarcity periods. We group various instruments according to different criterions, and review their potential and practical difficulties. By categorising the reviewed instruments under the stages of drought on which are best applied or referring to whether they are targeted to agricultural and operational droughts, we provide a framework for discussing their merits and drawbacks. This same framework is also used to evaluate the potential of each instrument and the evidence available to support it. We conclude by highlighting the limitation of economic instruments to manage drought risks. In part, this is because avoiding drought effects has public good properties. The chapter concludes, based on the available evidence, that there is still potential to manage part of the drought risks using financial instruments and insurance.

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Author information

Authors and Affiliations

  1. Department of Agricultural Economics and Social Sciences, Universidad Politécnica de Madrid, Spain

    Alberto Garrido & Almudena Gómez-Ramos

Authors
  1. Alberto Garrido
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  2. Almudena Gómez-Ramos
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Editor information

Editors and Affiliations

  1. Depto. Economía y Ciencias Sociales Agrarias, Universidad Politécnica de Madrid, Av. Complutense, s/n, 28040 Madrid, Spain

    Ana Iglesias (Dr.) (Dr.)

  2. Dipto. Ingegneria Civile e Ambientale, Universitá di Catania, Viale Andrea Doria, 6, 95125 Catania, Italy

    Antonino Cancelliere (Dr.) (Dr.)

  3. University of Nebraska, School of Natural Resources, National Drought Mitigation Center, 239 L.W. Chase Hall, Lincoln NE 68583-0749, USA

    Donald A. Wilhite (Dr.) (Dr.)

  4. Dpt. Ingeniería Civil: Hidraúlica y Energética, Universidad Politécnica de Madrid, Av. Complutense, s/n, 28040 Madrid, Spain

    Luis Garrote (Dr.) (Dr.)

  5. Canal de Isabel II, Santa Engracia, 125, 28003 Madrid, Spain

    Francisco Cubillo (Dr.) (Dr.)

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© 2009 Springer Science+Business Media B.V.

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Garrido, A., Gómez-Ramos, A. (2009). Risk Management Instruments Supporting Drought Planning and Policy. In: Iglesias, A., Cancelliere, A., Wilhite, D.A., Garrote, L., Cubillo, F. (eds) Coping with Drought Risk in Agriculture and Water Supply Systems. Advances in Natural and Technological Hazards Research, vol 26. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-9045-5_10

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