This article evaluates the effects of annual fluctuations in weather on employment in rural Mexico to gain insight into the potential labour market implications of climate change. Using a 28-year panel on individual employment, we find that years with a high occurrence of heat lead to a reduction in local employment, particularly for wage work and non-farm labour. Extreme heat also increases migration domestically from rural to urban areas and internationally to the US. A medium emissions scenario implies that increases in extreme heat may decrease local employment by up to 1.4% and climate change may increase migration by 1.4%.Climate change is predicted to bring increased incidence of extreme weather events, rising temperatures, melting ice caps and changing precipitation patterns (Solomon, 2007). A growing body of literature suggests that the economic costs of climate change may be substantial and far-reaching, impacting agriculture, mortality, labour productivity, economic growth, civil conflict and migration (Mendelsohn et al

Groundwater is a critical input to agricultural production across the globe. Current groundwater pumping rates frequently exceed recharge, often by a substantial amount, leading to groundwater depletion and potential declines in agricultural profits over time. As a result, many regions reliant on irrigated agriculture have proposed policies to manage groundwater use. Even when gains from aquifer management exist, there is little information about how policies affect individual producers sharing the resource. In this paper, we investigate the variability of groundwater management policy impacts across heterogeneous agricultural producers. To measure these impacts, we develop a hydroeconomic model that captures the important role of well capacity, productivity of water, and weather uncertainty. We use the model to simulate the impacts of groundwater management policies on producers in the High Plains aquifer of eastern Colorado and compare outcomes to a no‐policy baseline. The management policies considered include a pumping fee, a quantity restriction, and an irrigated acreage fee. We find that well capacity and soil type affect policy impacts but in ways that can qualitatively differ across policy type. Model results have important implications for the distributional impacts and political acceptability of groundwater management policies.

Weather variability has the potential to influence municipal water use, particularly in dry regions such as the western United States (U.S.). Outdoor water use can account for more than half of annual household water use and may be particularly responsive to weather, but little is known about how the expected magnitude of these responses varies across the U.S. This nationwide study identified the response of municipal water use to monthly weather (i.e., temperature, precipitation, evapotranspiration [ET]) using monthly water deliveries for 229 cities in the contiguous U.S. Using city‐specific multiple regression and region‐specific models with city fixed effects, we investigated what portion of the variability in municipal water use was explained by weather across cities, and also estimated responses to weather across seasons and climate regions. Our findings indicated municipal water use was generally well‐explained by weather, with median adjusted R2 ranging from 63% to 95% across climate regions. Weather was more predictive of water use in dry climates compared to wet, and temperature had more explanatory power than precipitation or ET. In response to a 1°C increase in monthly maximum temperature, municipal water use was shown to increase by 3.2% and 3.9% in dry cities in winter and summer, respectively, with smaller changes in wet cities. Quantifying these responses allows urban water managers to plan for weather‐driven variability in water use.

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Utilities and water suppliers in the southwestern United States have used education and conservation programs over the past two decades in an attempt to ameliorate the pressures of increasing water scarcity. This paper builds on a long history of water demand and environmental psychology literature and attempts to answer a simple question: do households primarily motivated by environmental and social (E&S) considerations consume water differently than households motivated primarily by cost and convenience (C&C)? We find that E&S consumers use less water than C&C consumers on average. We also find that there is no statistical difference between E&S and C&C consumers in their consumption responses to changing prices, temperature, and precipitation. This implies that targeting future conservation efforts to self-reported consumer groups may not improve policy effectiveness.

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Access to water for domestic and irrigation uses remains limited across Sub-Saharan Africa, particularly in rural areas. While the technical feasibility of implementing innovative technologies to improve water supply has been often evaluated, less is known about the drivers that motivate users to pay for obtaining the inherent benefits of improved water supply. In this article, the determinants of the marginal willingness to pay (mWTP) for improved domestic and irrigation water are investigated. For this purpose, a contingent valuation study is performed in rural Rwanda. This study uses survey data from 316 households situated in 8 villages, in which ~20 % of the households receive electricity thanks to microgrids powered by solar energy. It is found that the mWTP for improved domestic water supply is influenced by the proportion of children in the household, business ownership, and satisfaction with water quantity and quality. The mWTP for irrigation is determined by respondent education, business ownership and crop area planted. This paper contributes to the literature by allowing a comparison of the determinants of the mWTP for improved domestic water supply to the determinants of the mWTP for irrigation. Another contribution is to examine the mWTP for improved water infrastructure in partially electrified villages. Identifying areas with high marginal benefits from water can guide infrastructure investment and electrification efforts while improving well-being and increasing revenues in rural areas.