Natural Hazards and Earth System Sciences
Natural Hazards and Earth System Sciences
NHESS
Articles | Volume 15, issue 7
Articles | Volume 15, issue 7
https://doi.org/10.5194/nhess-15-1603-2015
© Author(s) 2015. This work is distributed under
the Creative Commons Attribution 3.0 License.
https://doi.org/10.5194/nhess-15-1603-2015
© Author(s) 2015. This work is distributed under
the Creative Commons Attribution 3.0 License.
Articles | Volume 15, issue 7
Research article
 | 
23 Jul 2015
Research article |  | 23 Jul 2015

Assessing the economic impacts of drought from the perspective of profit loss rate: a case study of the sugar industry in China

Y. Wang, L. Lin, and H. Chen

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Short summary
This paper proposes a new model to assess the economic impact of drought from the perspective of profit loss rate. The study focuses on economic impacts along a simple value chain involving only sugarcane growers and a sugar-producing company. In a rigid farming contract, growers suffer far more than the sugar company when impacted by severe drought. The difference in loss is sensitive to the sugarcane purchase price and considering this would provide potential solutions to such a problem.
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