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Due to climate change, the frequency and intensity of droughts are expected to increase. To improve resilience to droughts, proactive drought management is essential. Economic assessments are typically included to decide on the drought risk-reducing investments to make. The choice of both methods and scope of economic assessments influences the outcome, and thus the investment choice. This paper aims to identify how comprehensively economic assessments are applied in practice. Through a systematic literature review, 14 actual economic assessments are identified and their methods are evaluated based on seven criteria for economic assessments as derived from the United Nations Framework Convention on Climate Change (UNFCCC). The results show that in practice, economic assessments rarely address all criteria. Applying a limited number of criteria reduces the scope and narrows the approach, possibly leading to the underestimation of drought risk reduction approaches' related benefits. Applying the seven criteria in practice will improve the results of economic assessments of drought risk reduction measures, allowing for optimal investment selection. Based on the different criteria, a Framework for Economic Assessments of Drought Risk-Reducing Applications (FEADRRA) is proposed. Applying the criteria of the framework can support decision-makers in drought risk management and in carrying out the most fitting drought interventions. • Criteria of the economics of climate change rarely translate into practice. • Limited criteria included can underestimate risk-reducing measures' attractiveness. • A framework for the economic assessment of drought mitigation measures is proposed. [ABSTRACT FROM AUTHOR]

Risk assessment of drought disaster is necessary for the sustained agriculture development under the background of global climate change, and, meanwhile, it is an urgent scientific issue needed to be solved in agricultural risk assessment discipline. In this paper, collecting the areas covered by drought disasters, areas affected by drought disasters, areas with no harvest by drought disasters, areas planted, and yield per unit area data, agricultural drought disasters losses of the southern five provinces in China were calculated. The best probability density function was obtained according to the goodness of fit test results. Then, the value at risk (VaR) from financial market risk research method was used to the effective measure of agricultural drought risk. The results show that, in southern five provinces of our research region, risk of agricultural drought disaster in Yunnan and Guizhou is greater than other three provinces. In the scenario of 50 years and 100 years for a return, the crop loss caused by drought will reach 13.6% and 17.4% in Yunnan province, and the crop loss will be more serious in Guizhou province and be up to 15.3% and 18.1%. The above results can provide multifaceted information about drought risk that can help to guide management of drought disasters. [ABSTRACT FROM AUTHOR]