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Extreme climate events and adaptation: an exploratory analysis of drought in Mexico

Published online by Cambridge University Press:  01 June 2009

ROY BOYD  and
MARIA E. IBARRARÁN
ROY BOYD
Affiliation:
Ohio University, Department of Economics, Room 323 Bentley Annex, Athens, OH, 45701, USA. Email: [email protected]
MARIA E. IBARRARÁN
Affiliation:
Universidad Iberoamericana Puebla, Department of Economics, Blvd. del Nino Poblano 2901 Unidad Terrotorial Atlixcayotl, Puebla, Puebla 72430Mexico
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Abstract

Climate change is increasing the intensity of extreme weather events. Mexico is particularly prone to suffer at least two different types of these events: droughts and hurricanes. This paper focuses on the effects of an extended drought on the Mexican economy. Through a computable general equilibrium model, we simulate the impact of a drought that affects primarily agriculture, livestock, forestry, and hydropower generation. We look at the effects on the overall economy. We then simulate the effects of several adaptation strategies in (chiefly) the agricultural, forestry, and power sectors, and we arrive at some tentative yet significant conclusions. We find that the effects of such an event vary substantially by sector with moderate to severe overall impacts. Furthermore, we find that adaptation policies can only effect modest changes to the economic losses to be suffered.

Type
Research Article
Information
Environment and Development Economics , Volume 14 , Issue 3 , June 2009 , pp. 371 - 395
Copyright
Copyright © Cambridge University Press 2008

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