

During that period, economic incentives were implemented by the regional water provider in a successful attempt to reduce water consumption. Additionally, the chapter investigates the future projections of the extreme events.įrom late 2013 until the beginning of 2015, the metropolitan region of São Paulo, Brazil, experienced a severe water shortage. Hence, both areas have different attributing mechanisms. The Tamil Nadu region experiences it in the northeast monsoon season, and the windward side of the Western Ghats experiences it during the southwest monsoon period. However, Peninsular India received its extremes in two seasons. Central India is governed by varying mechanisms from oceanic warming to topographical features. However, in the northeast regions, the main dynamic reason is the westerly regimes of the southerly wind and synoptic systems from the nearby oceans. In general, Himalayan areas are controlled by extratropical intrusion and low-pressure systems. The dynamics of extreme events in all these regions are different. Therefore, the focus is on the extreme events in Peninsular India, central India, northeast regions, and the Himalayan regions. The nature and frequency of occurrence of these events are showing regional features. The linear trends reported by various studies are also explored and found that the trends are nonuniform throughout the nation. This chapter explores the systematic evolution of the studies of the extreme rainfall events over the Indian subcontinent and the regional characteristics. Thus, understanding the characteristics of extreme events throughout India is important for the country's overall development. The extreme rainfall events aggravate developing countries like India since the country's 54.6% human resources are involved in agriculture and allied sectors. This rainfall is highly varying in the spatiotemporal domain and thus, leads to localized and organized extreme events in the form of floods on micro to mesoscale. The Indian summer monsoon rainfall from June to September plays a vital role in providing water for agricultural and other lively needs. The Indian subcontinent is home to 1.39 billion people, mainly dependent on the agrarian-based economy. Penalty-based instruments are the technically effective drought response, but water sector decision makers in developing countries may need to contend with the distortionary effect of electoral cycles to implement them. Exploratory tests imply that the reward-based instrument increased the share of votes to the incumbent governor. Our suggested explanation lies in political budget cycle theory. We examine why the reward-based instrument, which was both ineffective and expensive, was implemented at all.

Using microdata on household water consumption and a difference-in-difference design, we find that a penalty-based instrument induced household conservation behaviour but that a reward-based instrument did not. We evaluate the policy response to the 2014–15 drought in Brazil that reduced the supply of water to the largest city in South America, São Paulo, by approximately one-third. This highlights the need for drought response policies that can mitigate these impacts. Drought can have large, negative impacts on livelihoods and development outcomes in low- and middle-income countries.
