The Action Group Smart Prices and Drought Insurance Schemes in Mediterranean Countries - SPADIS in brief - aims at establishing and implementing a methodology on "Smart Pricing and Drought Insurance Schemes in Mediterranean Countries". The methodology will be based on improved analysis (DPSIR), data and (water management and risk assessment) models to reduce and mitigate drought impacts, by managerial and behavioral change and appropriate economic instruments for increased water security. The Action Group involves different perspectives, such as insurance, water pricing for re-used wastewater, and water trading. The implementation phase will test the data sources and possible ways of improving and sharing them (e.g. via a common system under SEEA-W), and the analytical models and to validate the application.

1. EIP Water Action Group
Smart Prices and Drought Insurance
Schemes in Mediterranean Countries
(SPADIS)
21 November 2013
EU Parliament, Brussels

3. What
Design of 2 innovative instruments:
› Pricing water security (smart pricing system
for urban water consumption) and
› Drought insurance (for irrigated agriculture)
to reduce vulnerability to scarcity and
increase resilience to drought events
Why
To induce individual decisions regarding
water use in order to contribute to the
collective goals of reducing vulnerability to
scarcity and increasing resilience to
droughts
Priority areas
> flood and drought risk management
(priority 4)
> water governance (cross cutting
priority 6)
Specific actions
> Integrated risk assessment and
management approaches (i.e. implementation
of new insurance policies) (4.3)
> Water pricing policies based on innovative
approach (6.3)

4. Activities
EPI Water – Risk Assessment Model
AQUATOOL – Decision Support Tools
WATERSENSE – Groundwater management
WEAM4i
June 20th, 2013
SPADIS Kick-off meeting
June 20th-21st, 2013
Workshop on Economic Policy Instruments
for Water Management
July 8th, 2013
Kick-off teleconference between the EIP Water
Secretariat and the AG Leaders
September 1st-7th, 2013
Belpasso International Summer School in Environmental
and Resource Economics
September, 2013
SPADIS on the EIP Water Online Marketplace
October 21st, 2013
Second SPADIS Action Group Meeting
October 23rd, 2013
First Progress Report
November 21st, 2013
First EIP Water Conference [Brussels]
Ongoing research Initiatives
Future activities
Past activities

5. Increase the supply of available nonconventional water resources;
avoided due to its high relative cost.
Know-how in insuring natural
disasters: new insurance
schemes to mitigate drought
damages.
To share
information among
water stakeholders, to
develop a common
information source for a
common understanding of
water management
problems and
opportunities (innovating in
governance)
SPADIS should be able to
contribute to analyse in
Innovation potential
&
market opportunities
Outcomes of improving water pricing
and use water insurance systems to
mitigate the impact of droughts over water dependent
economic activities and increase water resilience
advance the
expected impact of
a certain incentive
mechanism for water
saving.
Recommendations and
methods to build a System for
Environmental-Economic Accounting for
Water (SEEA-W)

6. Milestones
Deliverables
February 2014
March 2014
Information sources and data gaps
Information sources for DPSR for drought and scarcity
March 2014
April 2014
(1) Third AG meeting
(2) Selection of case studies
Second progress report
May 2014
April 2014
Inventory, comparative analysis and best practice recommendations of
water demand models in water-stressed regions
Integration of the information sources
into a database
July 2014
June 2014
(1) Presentation of the information system platform
(2) Draft design of the hydro-economic model
July 2014
(1) Applied information system in the CS areas
(2) Draft design of the drought risk assessment
model
(1) Recommendations to build a SEEA-W &
(2) Hydro-economic modelling in Mediterranean countries
September 2014
(1) The drought risk assessment model (CS area)
(2) Economic valuation of drought risk in CS area
(3) Water prices and demand simulation model
Economic valuation of drought risk in CS area
October 2014
(1) Third progress report
(2) Report on alternatives to increase water security
December 2014
September 2014
Fourth AG meeting
January 2015
(1) Fifth AG meeting
(2) Applied drought risk assessment in CS areas
(3) Price schemes designed
(1) Practical recommendations on the instruments for water security
(2) A Smart Pricing Scheme
February 2015
(1) Recommendations on the use of insurance systems to cope with
drought risk in CS areas
(2) Water irrigation insurance scheme to stabilize farmers’ income to
reduce drought risk

7. Authors · Estefanía Ibáñez & Gonzalo Delacámara (IMDEA)

8. THANK YOU !
Smart Prices and Drought Insurance
Schemes in Mediterranean Countries
(SPADIS)
Find out more on
http://www.eip-water.eu/working-groups/smart-prices-and-drought-insuranceschemes-mediterranean-countries-spadis