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Insuring Water Supply in Irrigated Agriculture: A Proposal for Hydrological Drought Index-Based Insurance in Spain

Water Environmental and Agricultural Resources Economics (WEARE) Research Group, Faculty of Law and Business Sciences, University of Córdoba, Puerta Nueva s/n, E-14071 Córdoba, Spain
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Water 2019, 11(4), 686; https://doi.org/10.3390/w11040686
Received: 11 February 2019 / Revised: 1 April 2019 / Accepted: 2 April 2019 / Published: 3 April 2019
(This article belongs to the Special Issue Institutions and Economics of Water Scarcity and Droughts)
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Abstract

In Mediterranean-climate regions, irrigated agriculture is especially vulnerable to the risk of hydrological drought and irrigators are particularly concerned about its negative effects. During a hydrological drought episode, irrigators receive insufficient water to meet their crops’ water needs, giving rise to the so-called ‘water supply gap’. In such circumstances, agricultural production and irrigators’ incomes are considerably reduced. In order to minimize the negative effects associated with water supply gaps, a new index-based drought insurance scheme for irrigation is proposed, linked to the variable ‘stock of water available in reservoirs’. The proposal, although tailored to Spain, could be easily adapted to other countries or regions because the features of hydrological drought risk are similar worldwide. It is expected that the proposed scheme will improve drought risk management in irrigated agriculture, stabilizing irrigators’ incomes and guaranteeing the sustainability of irrigated agriculture in the face of global change. View Full-Text
Keywords: drought risk; water supply risk; irrigation insurance; water use; Spain drought risk; water supply risk; irrigation insurance; water use; Spain
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Guerrero-Baena, M.D.; Gómez-Limón, J.A. Insuring Water Supply in Irrigated Agriculture: A Proposal for Hydrological Drought Index-Based Insurance in Spain. Water 2019, 11, 686.

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