The costs of drought: the exceptional 2007-2008 case of Barcelona

The 2007-2008 drought in Barcelona was the most severe in the last century, resulting in total estimated losses of 1,661 million Euros for a one-year period, approximately 1% of the Catalonian GDP. The study categorizes costs into direct losses for economic agents (540.26 million Euros), indirect losses to the regional economy (358.47 million Euros), and non-market welfare losses (761.95 million Euros). To mitigate the crisis, the Government of Catalonia implemented demand-side restrictions and supply-side measures, including the shipping of water from France and Tarragona. The authors find that demand-side constraints were significantly more cost-efficient than water transport. Climate projections for the region suggest that the frequency of drought events may double, with increased duration and intensity.

• The 2007-2008 drought in Catalonia was the most severe event in terms of duration and intensity since 1916, particularly affecting the Ter-Llobregat system serving approximately 5.5 million people.
• Total economic losses for a one-year period are estimated at 1,661 million Euros, which represents nearly 1% of the Catalonian GDP.
• Direct costs for a one-year period totaled 540.26 million Euros, with the highest contributions coming from gardening and flower companies (210 million Euros) and hydroelectric production (127.30 million Euros).
• Indirect costs to the Catalan economy for a one-year period were estimated at 358.47 million Euros, with the industry sector suffering the largest loss at 273.15 million Euros.
• Non-market welfare losses, including environmental damage and household water restrictions, are estimated at 761.95 million Euros per year, a figure significantly higher than the 46.56 million Euros estimated by the Agència Catalana del’Aigua using the avoided cost method.
• Demand-side measures were found to be significantly more cost-efficient than supply-side transport measures; demand constraints had a ratio of 1.18 €/m³ compared to 32.59 €/m³ for water shipping.
• Public communication campaigns and awareness-raising efforts led to a cumulative water saving of approximately 506 Hm³ during the drought period, with an average saving of 14.45% relative to the 2005-2007 baseline.
• Climate change projections for Catalonia indicate that temperature has increased by 0.15ºC per decade over the last 30 years, and the frequency of drought events may double in the future.

APA

Martin-Ortega, J., & Markandya, A. (2009). The costs of drought: the exceptional 2007-2008 case of Barcelona. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/200911180108201970931971.pdf

Chicago

Martin-Ortega, Julia, and Anil Markandya. The costs of drought: the exceptional 2007-2008 case of Barcelona. Basque Centre for Climate Change, 2009. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/200911180108201970931971.pdf.

Wikipedia

{{cite report |last1=Martin-Ortega |first1=Julia |last2=Markandya |first2=Anil |title=The costs of drought: the exceptional 2007-2008 case of Barcelona |publisher=Basque Centre for Climate Change |date=November 2009 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/200911180108201970931971.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{martinortega2009costs, author = {Martin-Ortega, Julia and Markandya, Anil}, title = {{The costs of drought: the exceptional 2007-2008 case of Barcelona}}, institution = {Basque Centre for Climate Change}, year = {2009}, month = nov, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/200911180108201970931971.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }