Articles | Volume 15, issue 7
https://doi.org/10.5194/nhess-15-1603-2015
https://doi.org/10.5194/nhess-15-1603-2015
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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Cited articles

Ammar, A., Hanna, A. S., Nordheim, E. V., and Russell, J. S.: Indicator variables model of firm's size-profitability relationship of electrical contractors using financial and economic data, J. Constr. Eng. M. ASCE, 129, 192–197, 2003.
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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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