ABSTRACT
ABSTRACT: The Mediterranean region is facing rapid socioeconomic and environmental changes; this together with the uncertainty about the availability of resources under climate change conditions is challenging the sustainability of many water resources systems, increasing the potential impact of droughts. Hydroeconomic models simultaneously analyze engineering, hydrology and economic aspects of water resources management. The combination of these aspects is essential for the effective adaptation of water resources management to mitigate droughts. In this contribution, water scarcity cost is proposed as a drought indicator, showing the economic impact of droughts at the different users and at the river basin scale. The indicator allows to evaluate the efficiency of different policies for tackling droughts, including economic instruments such as water pricing policies and water markets. An econometric model is also applied to evaluate the influence of the most relevant sources on droughts impacts in the irrigated agriculture. All this is applied to the Jucar River Basin case study (Spain).
