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- Permanent Link:
- http://dpanther.fiu.edu/dpService/dpPurlService/purl/FI13042122/00001
Notes
- Summary:
- This report is a factsheet on the impact of drought on agriculture in Maharashtra, India. It presents the hazard posed by climate change-induced drought to the region’s economic value and livelihoods over the next 20 years, as well a portfolio of cost-effective climate resilient measures. With special reference to Maharastra, the largest drought prone agricultural region in India, the document presents possible response measures (e.g. insurance) to tackle expected drought losses under an extreme climate change scenario. The report outlines the ECA methodology, which involves the identification of the most relevant hazard, analysis of historic disaster data sets, an estimation of the expected economic loss should a disaster occur today, and the effects of future economic growth and climate change on this expected economic loss. The scenario analysis involves the construction of three levels of climate risk: today’s climate, moderate climate change, and high (or extreme) climate change for the year 2030. The next step focuses on the various ways of responding to climate risks identified. The expected annual loss due to drought in 2030 is USD 570 million compared to today’s expected loss of USD 238 million. In the next phase the report presents an assessment of possible loss aversion measures and cost-benefit ratios associated with each. Insurance or risk transfer is identified as having the highest loss aversion potential. It is important to note that insurance does not come with a cost/benefit ratio below one for the fact that insurance does not reduce risk but only transfers and diversifies it. Other important and cost effective measures that help to avert losses related to climate change include drip irrigation, sprinkler irrigation, drainage systems, soil techniques, watershed and rainwater harvesting, etc. It concludes that making rural communities more resilient to the impact of climate change requires a comprehensive portfolio of adaptation measures. In Maharashtra, India, almost 50% of the loss under a high climate change scenario can be cost-effectively averted through the adoption of various prevention and intervention measures. Another 30% of the expected loss could be covered by insurance. ( English,English )
- Abstract:
- Climate Change Adaptation
- Citation/Reference:
- Bresch, D., Spiegel, A. (2011). Economics of climate adaptation (ECA) - shaping climate-resilient development, a framework for decision-making. Swiss Reinsurance Company (Swiss Re).
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