Climate change and drought effects on rural income distribution in the Mediterranean: A case study for Spain

Abstract

This paper examines the effects of climate change and drought on agricultural incomes in Spanish rural areas. Present research has focused on the effects of these extreme climatological events through response functions, considering effects on crop productivity and average incomes. Among the impacts of droughts, we focused on potential effects on income distribution. The study of the effects on abnormally dry periods is therefore needed in order to perform an analysis of diverse social aspects in the long term. We estimate crop production functions for a range of Mediterranean crops in Spain and we use a measure of the decomposition of inequality to estimate the impact of climate change and drought on yield disparities. Certain adaptation measures may require a better understanding of risks by the public to achieve general acceptance. We provide empirical estimations for the marginal effects of the two impacts considered: farms' average income and income distribution. Our estimates consider crop production response to both biophysical and socio-economic aspects to analyse long-term implications on competitiveness and disparities. As for the results, we find disparities in the adaptation priorities depending on the crop and the region analysed.