1932
0
  1. Home
  2. A-Z Publications
  3. Annual Review of Resource Economics
  4. Volume 16, 2024
  5. Article

Annual Review of Resource Economics

Volume 16, 2024

The Economics of Drought

Abstract

Water scarcity and drought have determined the structure, location, and fate of civilizations throughout history. Drought remains an important factor in the performance of developed and developing economies, especially in the agricultural sector. While significant attention has been paid to drought as a meteorological phenomenon and on its economic impact, comparative institutional analysis of the economics of drought is limited. In this review, we focus on how economic institutions, the humanly devised constraints that shape the allocation and use of water, impact the severity and incidence of droughts. Water property rights in developed countries encourage infrastructure investments and reallocations that mitigate drought impacts, although such institutions may codify inequitable water access during drought. Developing economies rely more on informal strategies for mitigating drought and remain more vulnerable, experiencing economic losses, conflict, and violence.

Keyword(s): drought, institutions, JEL Q25, property rights, water, water rights
Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-101623-100253
2024-10-07
2025-04-17
Loading full text...

Full text loading...

/deliver/fulltext/resource/16/1/annurev-resource-101623-100253.html?itemId=/content/journals/10.1146/annurev-resource-101623-100253&mimeType=html&fmt=ahah

Literature Cited

  1. Ahmed S, McIntosh C, Sarris A. 2020.. The impact of commercial rainfall index insurance: experimental evidence from Ethiopia. . Am. J. Agric. Econ. 102:(4):1154–76
     [Crossref] [Google Scholar]
  2. Aiken ML, Pace CE, Ramachandran M, Schwabe KA, Ajami H, et al. 2023.. Disparities in drinking water manganese concentrations in domestic wells and community water systems in the Central Valley, CA, USA. . Environ. Sci. Technol. 57:(5):1987–96
     [Crossref] [Google Scholar]
  3. Allen RC, Bertazzini MC, Heldring L. 2023.. The economic origins of government. . Am. Econ. Rev. 113:(10):2507–45
     [Crossref] [Google Scholar]
  4. Anderson TL, Hill PJ. 1975.. The evolution of property rights: a study of the American West. . J. Law Econ. 18:(1):163–79
     [Crossref] [Google Scholar]
  5. Ayres AB, Edwards EC, Libecap GD. 2018.. How transaction costs obstruct collective action: the case of California's groundwater. . J. Environ. Econ. Manag. 91::46–65
     [Crossref] [Google Scholar]
  6. Ayres AB, Molina R. 2023.. Water market dynamics in the presence of environmental variability and government subsidies. Work. Pap. , Coll. Bus., Univ. Nevada, Reno:. https://drive.google.com/file/d/1TdM9mwdCkAAlFHZ1xlvoc5ZaCRNlPv4T/view
    [Google Scholar]
  7. Bai Y, Kung JKs. 2011.. Climate shocks and Sino-nomadic conflict. . Rev. Econ. Stat. 93:(3):970–81
     [Crossref] [Google Scholar]
  8. Bandyopadhyay S, Mershen B. 2022.. Falaj communities in Oman: A case for local governance? Ibāḍī legal rulings and spatial and ethnohistorical observations. . J. Mater. Cult. Muslim World 3:(1):6–47
     [Crossref] [Google Scholar]
  9. Barrios S, Bertinelli L, Strobl E. 2010.. Trends in rainfall and economic growth in Africa: a neglected cause of the African growth tragedy. . Rev. Econ. Stat. 92:(2):350–66
     [Crossref] [Google Scholar]
  10. Bennett LL, Howe CW, Shope J. 2000.. The interstate river compact as a water allocation mechanism: efficiency aspects. . Am. J. Agric. Econ. 82:(4):1006–15
     [Crossref] [Google Scholar]
  11. Benson L, Petersen K, Stein J. 2007.. Anasazi (Pre-Columbian Native-American) migrations during the middle-12th and late-13th centuries—Were they drought induced?. Clim. Change 83:(1–2):187–213
     [Crossref] [Google Scholar]
  12. Björkman-Nyqvis M. 2013.. Income shocks and gender gaps in education: evidence from Uganda. . J. Dev. Econ. 105::237–53
     [Crossref] [Google Scholar]
  13. Bliss C, Stern N. 1982.. Palanpur: The Economy of an Indian Village. Oxford, UK:: Oxford Univ. Press
     [Google Scholar]
  14. Boehlert BB, Jaeger WK. 2010.. Past and future water conflicts in the Upper Klamath Basin: an economic appraisal. . Water Resourc. Res. 46:(10):W10518
     [Crossref] [Google Scholar]
  15. Bohlken AT, Sergenti EJ. 2010.. Economic growth and ethnic violence: an empirical investigation of Hindu–Muslim riots in India. . J. Peace Res. 47:(5):589–600
     [Google Scholar]
  16. Brewis A, Workman C, Wutich A, Jepson W, Young S, et al. 2020.. Household water insecurity is strongly associated with food insecurity: evidence from 27 sites in low-and middle-income countries. . Am. J. Hum. Biol. 32:(1):e23309
     [Crossref] [Google Scholar]
  17. Brochmann M, Gleditsch NP. 2012.. Shared rivers and conflict—a reconsideration. . Political Geogr. 31:(8):519–27
     [Crossref] [Google Scholar]
  18. Browne OR, Ji XJ. 2023.. The economic value of clarifying property rights: evidence from water in Idaho's Snake River Basin. . J. Environ. Econ. Manag. 119::102799
     [Crossref] [Google Scholar]
  19. Brückner M, Ciccone A. 2011.. Rain and the democratic window of opportunity. . Econometrica 79:(3):923–47
     [Crossref] [Google Scholar]
  20. Buhaug H, von Uexkull N. 2021.. Vicious circles: violence, vulnerability, and climate change. . Annu. Rev. Environ. Resourc. 46::545–68
     [Crossref] [Google Scholar]
  21. Burgess R, Donaldson D. 2010.. Can openness mitigate the effects of weather shocks? Evidence from India's famine era. . Am. Econ. Rev. 100:(2):449–53
     [Crossref] [Google Scholar]
  22. Burke PJ, Leigh A. 2010.. Do output contractions trigger democratic change?. Am. Econ. J. Macroecon. 2:(4):124–57
     [Crossref] [Google Scholar]
  23. Cameron LA, Worswick C. 2001.. Education expenditure responses to crop loss in Indonesia: a gender bias. . Econ. Dev. Cult. Change 49:(2):351–63
     [Crossref] [Google Scholar]
  24. Carrão H, Naumann G, Barbosa P. 2016.. Mapping global patterns of drought risk: an empirical framework based on sub-national estimates of hazard, exposure and vulnerability. . Glob. Environ. Change 39::108–24
     [Crossref] [Google Scholar]
  25. Cervellati M, Sunde U, Valmori S. 2017.. Pathogens, weather shocks and civil conflicts. . Econ. J. 127:(607):2581–616
     [Crossref] [Google Scholar]
  26. Cobon DH, Ewai M, Inape K, Bourke RM. 2016.. Food shortages are associated with droughts, floods, frosts and enso in Papua New Guinea. . Agric. Syst. 145::150–64
     [Crossref] [Google Scholar]
  27. Cobourn KM, Ji X, Mooney S, Crescenti NF. 2022.. The effect of prior appropriation water rights on land-allocation decisions in irrigated agriculture. . Am. J. Agric. Econ. 104:(3):947–75
     [Crossref] [Google Scholar]
  28. Cole C, Jack K, Meng K, Visser M. 2023.. Dodging day zero: drought, adaptation, and inequality in Cape Town. Presented at the North East Universities Development Consortium (NEUDC) Conference , Harvard Univ., Cambridge, MA:, Nov. 4–5
    [Google Scholar]
  29. Cole S, Gine X, Tobacman J, Topalova P, Townsend R, Vickery J. 2013.. Barriers to household risk management: evidence from India. . Am. Econ. J. Appl. Econ. 5:(1):104–35
     [Crossref] [Google Scholar]
  30. Couttenier M, Soubeyran R. 2014.. Drought and civil war in sub-Saharan Africa. . Econ. J. 124:(575):201–44
     [Crossref] [Google Scholar]
  31. Cullen HM, Demenocal PB, Hemming S, Hemming G, Brown FH, et al. 2000.. Climate change and the collapse of the Akkadian empire: evidence from the deep sea. . Geology 28:(4):379–82
     [Crossref] [Google Scholar]
  32. Dai A. 2011.. Drought under global warming: a review. . WIREs Clim. Change 2:(1):45–65
     [Crossref] [Google Scholar]
  33. Dai A. 2013.. Increasing drought under global warming in observations and models. . Nat. Clim. Change 3:(1):52–58
     [Crossref] [Google Scholar]
  34. Dai A, Trenberth KE, Qian T. 2004.. A global dataset of palmer drought severity index for 1870–2002: relationship with soil moisture and effects of surface warming. . J. Hydrometeorol. 5:(6):1117–30
     [Crossref] [Google Scholar]
  35. Damania R, Desbureaux S, Hyland M, Islam A, Rodella AS, et al. 2017.. Uncharted Waters: The New Economics of Water Scarcity and Variability. Washington, DC:: World Bank Group
     [Google Scholar]
  36. Dasgupta S, Robinson EJ. 2022.. Attributing changes in food insecurity to a changing climate. . Sci. Rep. 12::4709
     [Crossref] [Google Scholar]
  37. Deitz S, Meehan K. 2019.. Plumbing poverty: mapping hot spots of racial and geographic inequality in U.S. household water insecurity. . Ann. Am. Assoc. Geogr. 109:(4):1092–109
     [Google Scholar]
  38. Dilling L, Daly ME, Kenney DA, Klein R, Miller K, et al. 2019.. Drought in urban water systems: learning lessons for climate adaptive capacity. . Clim. Risk Manag. 23::32–42
     [Crossref] [Google Scholar]
  39. Dinar S, Katz D, De Stefano L, Blankespoor B. 2015.. Climate change, conflict, and cooperation: global analysis of the effectiveness of international river treaties in addressing water variability. . Political Geogr. 45::55–66
     [Crossref] [Google Scholar]
  40. Ding Y, Hayes MJ, Widhalm M. 2011.. Measuring economic impacts of drought: a review and discussion. . Disaster Prev. Manag. 20:(4):434–46
     [Crossref] [Google Scholar]
  41. D'Odorico P, Chiarelli DD, Rosa L, Bini A, Zilberman D, Rulli MC. 2020.. The global value of water in agriculture. . PNAS 117:(36):21985–93
     [Crossref] [Google Scholar]
  42. Edwards EC, Cristi O, Edwards G, Libecap GD. 2018.. An illiquid market in the desert: estimating the cost of water trade restrictions in northern Chile. . Environ. Dev. Econ. 23:(6):615–34
     [Crossref] [Google Scholar]
  43. Edwards EC, Smith SM. 2018.. The role of irrigation in the development of agriculture in the United States. . J. Econ. Hist. 78:(4):1103–41
     [Crossref] [Google Scholar]
  44. Evans NP, Bauska TK, Gázquez-Sánchez F, Brenner M, Curtis JH, Hodell DA. 2018.. Quantification of drought during the collapse of the Classic Maya civilization. . Science 361:(6401):498–501
     [Crossref] [Google Scholar]
  45. Fafchamps M, Udry C, Czukas K. 1998.. Drought and saving in West Africa: Are livestock a buffer stock?. J. Dev. Econ. 55:(2):273–305
     [Crossref] [Google Scholar]
  46. Fidell M, Shipman M. 2023.. Who makes decisions about California's water? Presented at the Adapting Water Rights to our 21st Century Climate Informational Hearing, Assembly Committee on Water, Parks, and Wildlife, Sacramento, CA:, Feb. 28. https://www.restorethedelta.org/wp-content/uploads/2023-Fidell-Who-Makes-Decisions-about-Californias-Water.pdf
    [Google Scholar]
  47. Fleming-Muñoz DA, Whitten S, Bonnett GD. 2023.. The economics of drought: a review of impacts and costs. . Aust. J. Agric. Resour. Econ. 67:(4):501–23
     [Crossref] [Google Scholar]
  48. Freire-González J, Decker C, Hall JW. 2017.. The economic impacts of droughts: a framework for analysis. . Ecol. Econ. 132::196–204
     [Crossref] [Google Scholar]
  49. Garrick D, De Stefano L, Yu W, Jorgensen I, O'Donnell E, et al. 2019a.. Rural water for thirsty cities: a systematic review of water reallocation from rural to urban regions. . Environ. Res. Lett. 14:(4):043003
     [Crossref] [Google Scholar]
  50. Garrick D, O'Donnell E, Moore MS, Brozovic N, Iseman T. 2019b.. Informal water markets in an urbanising world: some unanswered questions. Rep. AUS0000606 , World Bank Group, New York:. https://documents1.worldbank.org/curated/en/358461549427540914/pdf/Informal-Water-Markets-in-an-Urbanising-World-Some-Unanswered-Questions.pdf
    [Google Scholar]
  51. Garrick DE, Hahn RW. 2021.. An economic perspective on water security. . Rev. Environ. Econ. Policy 15:(1):45–66
     [Crossref] [Google Scholar]
  52. Gleditsch NP, Furlong K, Hegre H, Lacina B, Owen T. 2006.. Conflicts over shared rivers: Resource scarcity or fuzzy boundaries?. Political Geogr. 25:(4):361–82
     [Crossref] [Google Scholar]
  53. Grafton RQ, Libecap GD, Edwards EC, O'Brien RJ, Landry C. 2012.. Comparative assessment of water markets: insights from the Murray–Darling Basin of Australia and the Western USA. . Water Policy 14:(2):175–93
     [Crossref] [Google Scholar]
  54. Grafton RQ, Wheeler SA. 2018.. Economics of water recovery in the Murray-Darling Basin, Australia. . Annu. Rev. Resour. Econ. 10::487–510
     [Crossref] [Google Scholar]
  55. Gray CL, Mueller V. 2012.. Natural disasters and population mobility in Bangladesh. . PNAS 109:(16):6000–5
     [Crossref] [Google Scholar]
  56. Grimard F. 1997.. Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire. . J. Dev. Econ. 53:(2):391–422
     [Crossref] [Google Scholar]
  57. Hagerty N. 2022.. Adaptation to surface water scarcity in irrigated agriculture. Work. Pap. , Dep. Agric. Econ., Montana State Univ., Bozeman:. https://hagertynw.github.io/webfiles/Surface_Water_Adaptation.pdf
    [Google Scholar]
  58. Hanemann M. 2014.. Property rights and sustainable irrigation—a developed world perspective. . Agric. Water Manag. 145::5–22
     [Crossref] [Google Scholar]
  59. Hansen ZK, Libecap GD. 2004.. Small farms, externalities, and the dust bowl of the 1930s. . J. Political Econ. 112:(3):665–94
     [Crossref] [Google Scholar]
  60. Harari M, Ferrara EL. 2018.. Conflict, climate, and cells: a disaggregated analysis. . Rev. Econ. Stat. 100:(4):594–608
     [Crossref] [Google Scholar]
  61. Harrington C, Montana P, Schmidt JJ, Swain A. 2023.. Race, ethnicity, and the case for intersectional water security. . Glob. Environ. Politics 23:(2):1–10
     [Crossref] [Google Scholar]
  62. Heidari H, Arabi M, Warziniack T. 2021.. Vulnerability to water shortage under current and future water supply-demand conditions across US river basins. . Earth's Fut. 9:(10):e2021EF002278
     [Crossref] [Google Scholar]
  63. Hendrix CS, Salehyan I. 2012.. Climate change, rainfall, and social conflict in Africa. . J. Peace Res. 49:(1):35–50
     [Crossref] [Google Scholar]
  64. Hoddinott J, Kinsey B. 2001.. Child growth in the time of drought. . Oxf. Bull. Econ. Stat. 63:(3):409–36
     [Crossref] [Google Scholar]
  65. Hornbeck R. 2023.. Dust bowl migrants: environmental refugees and economic adaptation. . J. Econ. Hist. 83:(3):645–75
     [Crossref] [Google Scholar]
  66. Jackson S, Carmody E, Hartwig L. 2021.. Treading water on indigenous water rights: the serious deficiencies of water allocation planning and management in NSW under the Murray Darling Basin plan. . Pandora's Box 27::72–97
     [Google Scholar]
  67. Jacoby HG, Skoufias E. 1997.. Risk, financial markets, and human capital in a developing country. . Rev. Econ. Stud. 64:(3):311–35
     [Crossref] [Google Scholar]
  68. Jasechko S, Perrone D. 2021.. Global groundwater wells at risk of running dry. . Science 372:(6540):418–21
     [Crossref] [Google Scholar]
  69. Jayachandran S. 2006.. Selling labor low: wage responses to productivity shocks in developing countries. . J. Political Econ. 114:(3):538–75
     [Crossref] [Google Scholar]
  70. Jensen R. 2000.. Agricultural volatility and investments in children. . Am. Econ. Rev. 90:(2):399–404
     [Crossref] [Google Scholar]
  71. Ji X, Cobourn KM. 2018.. The economic benefits of irrigation districts under prior appropriation doctrine: an econometric analysis of agricultural land-allocation decisions. . Can. J. Agric. Econ. Rev. Can. Agroecon. 66:(3):441–67
     [Crossref] [Google Scholar]
  72. Jia R. 2014.. Weather shocks, sweet potatoes and peasant revolts in historical China. . Econ. J. 124:(575):92–118
     [Crossref] [Google Scholar]
  73. Kariuki M, Schwartz J. 2005.. Small-scale private service providers of water supply and electricity: a review of incidence, structure, pricing, and operating characteristics. Policy Res. Work. Pap. , World Bank, New York:. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-3727
    [Google Scholar]
  74. Karlan D, Osei R, Osei-Akoto I, Udry C. 2014.. Agricultural decisions after relaxing credit and risk constraints. . Q. J. Econ. 129:(2):597–652
     [Crossref] [Google Scholar]
  75. Kendy E, Aylward B, Ziemer LS, Richter BD, Colby BG, et al. 2018.. Water transactions for streamflow restoration, water supply reliability, and rural economic vitality in the western United States. . J. Am. Water Resourc. Assoc. 54:(2):487–504
     [Crossref] [Google Scholar]
  76. Khanal R, Brady MP, Stöckle CO, Rajagopalan K, Yoder J, Barber ME. 2021.. The economic and environmental benefits of partial leasing of agricultural water rights. . Water Resourc. Res. 57:(11):e2021WR029712
     [Crossref] [Google Scholar]
  77. Kim NK. 2016.. Revisiting economic shocks and coups. . J. Conflict Resolut. 60:(1):3–31
     [Crossref] [Google Scholar]
  78. Klasic M, Fencl A, Ekstrom JA, Ford A. 2022.. Adapting to extreme events: small drinking water system manager perspectives on the 2012–2016 California Drought. . Clim. Change 170:(3–4):26
     [Crossref] [Google Scholar]
  79. Klassert C, Yoon J, Sigel K, Klauer B, Talozi S, et al. 2023.. Unexpected growth of an illegal water market. . Nat. Sustain. 6::1406–17
     [Crossref] [Google Scholar]
  80. Kochar A. 1999.. Smoothing consumption by smoothing income: hours-of-work responses to idiosyncratic agricultural shocks in rural India. . Rev. Econ. Stat. 81:(1):50–61
     [Crossref] [Google Scholar]
  81. Koren O, Bagozzi BE, Benson TS. 2021.. Food and water insecurity as causes of social unrest: evidence from geolocated twitter data. . J. Peace Res. 58:(1):67–82
     [Crossref] [Google Scholar]
  82. Kung JK, Ma C. 2014.. Can cultural norms reduce conflicts? Confucianism and peasant rebellions in Qing China. . J. Dev. Econ. 111::132–49
     [Crossref] [Google Scholar]
  83. Langenbrunner B. 2021.. Water, water not everywhere. . Nat. Clim. Change 11:(8):650–50
     [Crossref] [Google Scholar]
  84. Lansbury Hall N, Crosby L. 2022.. Climate change impacts on health in remote indigenous communities in Australia. . Int. J. Environ. Health Res. 32:(3):487–502
     [Crossref] [Google Scholar]
  85. Leonard B, Costello C, Libecap GD. 2019.. Expanding water markets in the western United States: barriers and lessons from other natural resource markets. . Rev. Environ. Econ. Policy 13:(1):44–61
     [Crossref] [Google Scholar]
  86. Leonard B, Libecap GD. 2019.. Collective action by contract: prior appropriation and the development of irrigation in the western United States. . J. Law Econ. 62:(1):67–115
     [Crossref] [Google Scholar]
  87. Levy Z, Jurgens B, Burow KR, Voss S, Faulkner K, et al. 2021.. Critical aquifer overdraft accelerates degradation of groundwater quality in California's Central Valley during drought. . Geophys. Res. Lett. 48:(17):e2021GL094398
     [Crossref] [Google Scholar]
  88. Libecap GD, Dinar A. 2023.. American agriculture can adapt to climate change-induced water extremes. . Choices 38:(4):1–7
     [Google Scholar]
  89. Lobell DB, Roberts MJ, Schlenker W, Braun N, Little BB, et al. 2014.. Greater sensitivity to drought accompanies maize yield increase in the US midwest. . Science 344:(6183):516–19
     [Crossref] [Google Scholar]
  90. Lund J, Medellín-Azuara J. 2018.. California: water security from infrastructure, institutions, and the global economy. . In Global Water Security: Lessons Learnt and Long-Term Implications, ed. World Water Council , pp. 267–79. Singapore:: Springer
     [Google Scholar]
  91. Maccini S, Yang D. 2009.. Under the weather: health, schooling, and economic consequences of early-life rainfall. . Am. Econ. Rev. 99:(3):1006–26
     [Crossref] [Google Scholar]
  92. Macpherson E. 2020.. Indigenous water rights in comparative law. . Transnatl. Environ. Law 9:(3):393–402
     [Crossref] [Google Scholar]
  93. Maitra P, Tagat A. 2019.. Labour supply responses to rainfall shocks. Work. Pap. , Dep. Econ., Monash Univ., Melbourne, Aust:. https://dx.doi.org/10.2139/ssrn.3449144
    [Google Scholar]
  94. Maystadt JF, Ecker O. 2014.. Extreme weather and civil war: Does drought fuel conflict in Somalia through livestock price shocks?. Am. J. Agric. Econ. 96:(4):1157–82
     [Crossref] [Google Scholar]
  95. Mehlum H, Miguel E, Torvik R. 2006.. Poverty and crime in 19th century Germany. . J. Urban Econ. 59:(3):370–88
     [Crossref] [Google Scholar]
  96. Mekonnen MM, Hoekstra AY. 2016.. Four billion people facing severe water scarcity. . Sci. Adv. 2:(2):e1500323
     [Crossref] [Google Scholar]
  97. Miara A, Macknick JE, Vörösmarty CJ, Tidwell VC, Newmark R, Fekete B. 2017.. Climate and water resource change impacts and adaptation potential for us power supply. . Nat. Clim. Change 7:(11):793–98
     [Crossref] [Google Scholar]
  98. Miguel E. 2005.. Poverty and witch killing. . Rev. Econ. Stud. 72:(4):1153–72
     [Crossref] [Google Scholar]
  99. Miguel E, Satyanath S, Sergenti E. 2004.. Economic shocks and civil conflict: an instrumental variables approach. . J. Political Econ. 112:(4):725–53
     [Crossref] [Google Scholar]
  100. Mishra V, Tiwari AD, Aadhar S, Shah R, Xiao M, et al. 2019.. Drought and famine in India, 1870–2016. . Geophys. Res. Lett. 46:(4):2075–83
     [Crossref] [Google Scholar]
  101. Mobarak AM, Rosenzweig MR. 2013.. Informal risk sharing, index insurance, and risk taking in developing countries. . Am. Econ. Rev. 103:(3):375–80
     [Crossref] [Google Scholar]
  102. Mobarak AM, Rosenzweig MR. 2014.. Risk, insurance and wages in general equilibrium. NBER Work. Pap. 19811
    [Google Scholar]
  103. Morduch J. 1999.. Between the state and the market: Can informal insurance patch the safety net?. World Bank Res. Obs. 14:(2):187–207
     [Crossref] [Google Scholar]
  104. Morduch JJ. 1991.. Risk and Welfare in Developing Countries. Ph.D. Thesis , Dep. Econ., Harvard Univ., Cambridge, MA:
     [Google Scholar]
  105. Mueller JT, Gasteyer S. 2021.. The widespread and unjust drinking water and clean water crisis in the United States. . Nat. Commun. 12:(1):3544
     [Crossref] [Google Scholar]
  106. Munshi K. 2003.. Networks in the modern economy: Mexican migrants in the U.S. labor market. . Q. J. Econ. 118:(2):549–99
     [Crossref] [Google Scholar]
  107. Nelson KS, Burchfield EK. 2017.. Effects of the structure of water rights on agricultural production during drought: a spatiotemporal analysis of California's Central Valley. . Water Resourc. Res. 53:(10):8293–309
     [Crossref] [Google Scholar]
  108. Nelson MC, Ingram SE, Dugmore AJ, Streeter R, Peeples MA, et al. 2016.. Climate challenges, vulnerabilities, and food security. . PNAS 113:(2):298–303
     [Crossref] [Google Scholar]
  109. Ngcamu BS, Chari F. 2020.. Drought influences on food insecurity in Africa: a systematic literature review. . Int. J. Environ. Res. Public Health 17:(16):5897
     [Crossref] [Google Scholar]
  110. Njoka EM. 2019.. Occurrence and Effects of Drought in Sub-Saharan Africa, ed. T Simelane , pp. 119–29. Pretoria:: Afr. Inst. S. Afr.
     [Google Scholar]
  111. Ostrom E. 1990.. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK:: Cambridge Univ. Press
     [Google Scholar]
  112. Ostrom E. 2008.. Design principles of robust property-rights institutions: What have we learned?. In Elinor Ostrom and the Bloomington School of Political Economy, Vol. 2: Resource Governance, ed. DH Cole, MD McGinnis , pp. 215–48. Lanham, MD:: Rowman & Littlefield
     [Google Scholar]
  113. Ostrom V, Ostrom E. 1972.. Legal and political conditions of water resource development. . Land Econ. 48:(1):1–14
     [Crossref] [Google Scholar]
  114. Pandey B, Brelsfort C, Seto KC. 2022.. Infrastructure inequality is a characteristic of urbanization. . PNAS 119:(15):e2119890119
     [Crossref] [Google Scholar]
  115. Paxson CH. 1992.. Using weather variability to estimate the response of savings to transitory income in Thailand. . Am. Econ. Rev. 82:(1):15–33
     [Google Scholar]
  116. Rafey W. 2023.. Droughts, deluges, and (river) diversions: valuing market-based water reallocation. . Am. Econ. Rev. 113:(2):430–71
     [Crossref] [Google Scholar]
  117. Raleigh C, Kniveton D. 2012.. Come rain or shine: an analysis of conflict and climate variability in East Africa. . J. Peace Res. 49:(1):51–64
     [Crossref] [Google Scholar]
  118. Rhue SJ, Torrico G, Amuzie C, Collins SM, Lemaitre A, et al. 2023.. The effects of household water insecurity on child health and well-being. . WIREs Water 10::e1666
     [Crossref] [Google Scholar]
  119. Rosa L, Chiarelli DD, Rulli MC, Dell'Angelo J, D'Odorico P. 2020.. Global agricultural economic water scarcity. . Sci. Adv. 6:(18):eaaz6031
     [Crossref] [Google Scholar]
  120. Rose E. 1999.. Consumption smoothing and excess female mortality in rural India. . Rev. Econ. Stat. 81:(1):41–49
     [Crossref] [Google Scholar]
  121. Rose E. 2001.. Ex ante and ex post labor supply response to risk in a low-income area. . J. Dev. Econ. 64:(2):371–88
     [Crossref] [Google Scholar]
  122. Rosegrant MW, Ringler C, Zhu T. 2009.. Water for agriculture: maintaining food security under growing scarcity. . Annu. Rev. Environ. Resourc. 34::205–22
     [Crossref] [Google Scholar]
  123. Rosenzweig MR. 1988.. Risk, implicit contracts and the family in rural areas of low-income countries. . Econ. J. 98:(393):1148–70
     [Crossref] [Google Scholar]
  124. Rosenzweig MR, Binswanger HP. 1993.. Wealth, weather risk and the composition and profitability of agricultural investments. . Econ. J. 103:(416):56–78
     [Crossref] [Google Scholar]
  125. Rosenzweig MR, Stark O. 1989.. Consumption smoothing, migration, and marriage: evidence from rural India. . J. Political Econ. 97:(4):905–26
     [Crossref] [Google Scholar]
  126. Rosenzweig MR, Wolpin KI. 1993.. Credit market constraints, consumption smoothing, and the accumulation of durable production assets in low-income countries: investments in bullocks in India. . J. Political Econ. 101:(2):223–44
     [Crossref] [Google Scholar]
  127. Rusca M, Savelli E, Di Baldassarre G, Biza A, Messori G. 2023.. Unprecedented droughts are expected to exacerbate urban inequalities in Southern Africa. . Nat. Clim. Change 13:(1):98–105
     [Crossref] [Google Scholar]
  128. Sanchez L, Edwards E, Leonard B. 2020.. The economics of indigenous water claim settlements in the American West. . Environ. Res. Lett. 15:(9):094027
     [Crossref] [Google Scholar]
  129. Sanchez L, Leonard B, Edwards EC. 2023a.. Paper water, wet water, and the recognition of indigenous property rights. . J. Assoc. Environ. Resour. Econ. 10:(6):1545–79
     [Google Scholar]
  130. Sanchez L, Warziniack T, Knowles M. 2023b.. The inequitable exposure of socially vulnerable groups to water shortages across the United States. . Environ. Res. Lett. 18:(4):044022
     [Crossref] [Google Scholar]
  131. Sarsons H. 2015.. Rainfall and conflict: a cautionary tale. . J. Dev. Econ. 115::62–72
     [Crossref] [Google Scholar]
  132. Scanlon BR, Fakhreddine S, Reedy RC, Yang Q, Malito JG. 2022.. Drivers of spatiotemporal variability in drinking water quality in the United States. . Environ. Sci. Technol. 56:(18):12965–74
     [Crossref] [Google Scholar]
  133. Sekhri S, Storeygard A. 2014.. Dowry deaths: response to weather variability in India. . J. Dev. Econ. 111::212–23
     [Crossref] [Google Scholar]
  134. Smith SM. 2021.. The relative economic merits of alternative water right systems. . J. Environ. Econ. Manag. 105::102389
     [Crossref] [Google Scholar]
  135. Smith SM, Edwards EC. 2021.. Water storage and agricultural resilience to drought: historical evidence of the capacity and institutional limits in the United States. . Environ. Res. Lett. 16::124020
     [Crossref] [Google Scholar]
  136. Stanke C, Kerac M, Prudhomme C, Medlock J, Murray V. 2013.. Health effects of drought: a systematic review of the evidence. . PLOS Curr. 5:. https://doi.org/10.1371/currents.dis.7a2cee9e980f91ad7697b570bcc4b004
    [Google Scholar]
  137. Szeptycki LF, Forgie J, Hook E, Lorick K, Womble P. 2015.. Environmental water rights transfers: a review of state laws. Tech. Rep. , Water West, Stanford Univ., Stanford, CA:. waterinthewest.stanford.edu/sites/default/files/WITW-WaterRightsLawReview-2015-FINAL.pdf
    [Google Scholar]
  138. Theisen OM, Holtermann H, Buhaug H. 2012.. Climate wars? Assessing the claim that drought breeds conflict. . Int. Secur. 36:(3):79–106
     [Crossref] [Google Scholar]
  139. Timyan J, Brechin SJG, Measham DM, Ogunleye B. 2018.. Access to care: more than a problem of distance. . In The Health of Women, ed. M Koblinsky, J Timyan, J Gay , pp. 217–34. New York:: Routledge
     [Google Scholar]
  140. Venkatachalam L. 2015.. Informal water markets and willingness to pay for water: a case study of the urban poor in Chennai City, India. . Int. J. Water Resour. Dev. 31:(1):134–45
     [Crossref] [Google Scholar]
  141. Vermeulen S, Cools J, Staes J, Van Passel S. 2023.. A review of economic assessments of drought risk reduction approaches in agriculture. . J. Environ. Manag. 345::118909
     [Crossref] [Google Scholar]
  142. von Uexkull N. 2014.. Sustained drought, vulnerability and civil conflict in sub-Saharan Africa. . Political Geogr. 43::16–26
     [Crossref] [Google Scholar]
  143. Vorosmarty CJ, Green P, Salisbury J, Lammers RB. 2000.. Global water resources: vulnerability from climate change and population growth. . Science 289:(5477):284–88
     [Crossref] [Google Scholar]
  144. Wheeler SA. 2022.. Debunking Murray-Darling Basin water trade myths. . Aust. J. Agric. Resour. Econ. 66:(4):797–821
     [Crossref] [Google Scholar]
  145. Wischnath G, Buhaug H. 2014.. On climate variability and civil war in Asia. . Clim. Change 122::709–21
     [Crossref] [Google Scholar]
  146. Wutich A, Beresford M, Carvajal C. 2016.. Can informal water vendors deliver on the promise of a human right to water? Results from Cochabamba, Bolivia. . World Dev. 79::14–24
     [Crossref] [Google Scholar]
  147. Yang D, Choi H. 2007.. Are remittances insurance? Evidence from rainfall shocks in the Philippines. . World Bank Econ. Rev. 21:(2):219–48
     [Crossref] [Google Scholar]
  148. Zaveri E, Damania R, Engle N. 2023.. Droughts and deficits: summary evidence of the global impact on economic growth. Work. Pap. , World Bank, Washington, DC:
     [Google Scholar]
  149. Zaveri E, Wrenn DH, Fisher-Vanden K. 2016.. Water in the balance: the impact of water infrastructure on agricultural adaptation to rainfall shocks in India. Presented at the 2016 Annual Meeting of the Agricultural and Applied Economics Association, July 31–Aug. 2 , Boston, MA:
     [Google Scholar]
/content/journals/10.1146/annurev-resource-101623-100253
Loading
The Economics of Drought
Annual Review of Resource Economics 16, 105 (2024); https://doi.org/10.1146/annurev-resource-101623-100253
/content/journals/10.1146/annurev-resource-101623-100253
/content/journals/10.1146/annurev-resource-101623-100253
Loading

Data & Media loading...

  • Article Type: Review Article

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error