Evaluation of the Socioeconomic Impacts of the Drought Events: The Case of the Po River Basin by Dario Musolino, Alessandro de Carli and Antonio Massarutto

ABSTRACT

The WP focuses on the socioeconomic impacts of drought events. Its objec-tive is in particular to explore and study the distributive effects of drought events in the agricultural sector, taking the Po river basin, the most im-portant agricultural area in Italy, as case study area.
Its theoretical and methodological approach makes basis on the consum-er surplus theory. One of the most remarkable outcomes of this analysis is that the effects of the drought events change considerably according to the social group.
As far as agriculture is concerned, it shows that farmers and consumers are affected differently. Farmers can even earn from drought, because of the “price effect” caused by the scarcity of agricultural products; consumers al-ways loses, because of the “quantity effect” and the “price effect”.
Very different impacts, in terms of sign and magnitude, were also ob-served among the farmers themselves, in particular when they are distin-guished by crop category, and by geographical area.