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 outputs in Spanish rural areas. By now the effects of drought as a response to climate change or policy restrictions have been analyzed through response functions considering direct effects on crop productivity and incomes. These changes also affect incomes distribution in the region and therefore modify the social structure. Here we consider this complementary indirect effect on social distribution of incomes which is essential in the long term. We estimate crop production functions for a range of Mediterranean crops in Spain and we use a decomposition of inequalities measure to estimate the impact of climate change and drought on yield disparities. This social aspect is important for climate change policies since it can be determinant for the public acceptance of certain adaptation measures in a context of drought. We provide the empirical estimations for the marginal effects of the two considered impacts: farms' income average and social income distribution. In our estimates we consider crop productivity response to both bio-physical and socio-economic aspects to analyze long term implications on both competitiveness and social disparities. We find disparities in the adaptation priorities depending on the crop and the region analyzed.