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Valuing drought impact mitigation on ecosystem services in a Mediterranean country

Farizo, Begoña A. ; Sevilla-Callejo, Miguel ; Soliño, Mario ; Vicente-Serrano, Sergio M. ; Lopez-Moreno, Juan I. ; Lázaro-Alquézar, Angelina ; Murphy, Conor ; Grainger, Sam ; Conradt, Tobias and Jin, Hongxiao LU , et al. (2024) In Journal of Arid Environments 225.
Abstract
Drought is a complex natural hazard increasing in frequency, duration, and severity worldwide. Although droughts cause both market and non-market impacts, the latter suffers from a dearth of economic studies quantifying their magnitude. In this paper, we investigated how droughts affect selected ecosystem services expected to result in welfare losses in Spain. This study is aimed at quantifying and simulating societal losses given the expected potential increase in drought severity in the coming decades. We estimated a Discrete Choice Latent Class Model by which we distinguished three broad classes of individuals. The common behavior across all classes is that people consistently choose to avoid the negative effects of droughts. However,... (More)
Drought is a complex natural hazard increasing in frequency, duration, and severity worldwide. Although droughts cause both market and non-market impacts, the latter suffers from a dearth of economic studies quantifying their magnitude. In this paper, we investigated how droughts affect selected ecosystem services expected to result in welfare losses in Spain. This study is aimed at quantifying and simulating societal losses given the expected potential increase in drought severity in the coming decades. We estimated a Discrete Choice Latent Class Model by which we distinguished three broad classes of individuals. The common behavior across all classes is that people consistently choose to avoid the negative effects of droughts. However, there are substantial differences among the three classes; while class 1 chooses options regardless of cost, even when selecting the most expensive ones, the other two classes account for the size of the payment. Moreover, health and water use restrictions have been decisive factors in individuals' choices. We have also observed that the perception of climate change is related to individual decisions. We quantified the enormous damage drought causes to societal well-being. Policymakers should take this information into account when addressing the increasing likelihood of extreme weather events. (Less)
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organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Choice experimentClimate change perceptionDrought impactsEconomic valuationLatent class modelStrategic behavior
in
Journal of Arid Environments
volume
225
article number
105277
pages
10 pages
publisher
Elsevier
external identifiers
  • scopus:85208566592
ISSN
1095-922X
DOI
10.1016/j.jaridenv.2024.105277
project
Cross-sectoral impact assessment of droughts in complex European basins
language
English
LU publication?
yes
id
ae28a732-f3f1-4a69-b3b8-379fcd23f784
date added to LUP
2025-04-21 21:24:30
date last changed
2025-04-23 08:44:59
@article{ae28a732-f3f1-4a69-b3b8-379fcd23f784,
  abstract     = {{Drought is a complex natural hazard increasing in frequency, duration, and severity worldwide. Although droughts cause both market and non-market impacts, the latter suffers from a dearth of economic studies quantifying their magnitude. In this paper, we investigated how droughts affect selected ecosystem services expected to result in welfare losses in Spain. This study is aimed at quantifying and simulating societal losses given the expected potential increase in drought severity in the coming decades. We estimated a Discrete Choice Latent Class Model by which we distinguished three broad classes of individuals. The common behavior across all classes is that people consistently choose to avoid the negative effects of droughts. However, there are substantial differences among the three classes; while class 1 chooses options regardless of cost, even when selecting the most expensive ones, the other two classes account for the size of the payment. Moreover, health and water use restrictions have been decisive factors in individuals' choices. We have also observed that the perception of climate change is related to individual decisions. We quantified the enormous damage drought causes to societal well-being. Policymakers should take this information into account when addressing the increasing likelihood of extreme weather events.}},
  author       = {{Farizo, Begoña A. and Sevilla-Callejo, Miguel and Soliño, Mario and Vicente-Serrano, Sergio M. and Lopez-Moreno, Juan I. and Lázaro-Alquézar, Angelina and Murphy, Conor and Grainger, Sam and Conradt, Tobias and Jin, Hongxiao and Boincean, Boris}},
  issn         = {{1095-922X}},
  keywords     = {{Choice experimentClimate change perceptionDrought impactsEconomic valuationLatent class modelStrategic behavior}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Journal of Arid Environments}},
  title        = {{Valuing drought impact mitigation on ecosystem services in a Mediterranean country}},
  url          = {{http://dx.doi.org/10.1016/j.jaridenv.2024.105277}},
  doi          = {{10.1016/j.jaridenv.2024.105277}},
  volume       = {{225}},
  year         = {{2024}},
}