The Hidden Costs of Recurring Drought: Climate Change and Economic Losses in the Barcelona Metropolitan Area

• Authors: Sergio Baraibar Molina, Jaume Freire González and Helena Torres Alvaro
• Sustainability (Switzerland), Vol. 18, No. 9, May 2026

Mediterranean water systems face intensifying drought pressure under climate change, yet the long-term macroeconomic consequences of recurrent water restrictions remain largely unquantified at the metropolitan scale. This study estimates the cumulative economic costs of drought-induced water restrictions in the Barcelona Metropolitan Area (AMB) over 2016–2099 using a supply-driven Input–Output (Ghosh) model driven by six hydro-climatic projections. Drought conditions persist in more than half of all simulated months across all climate projections, generating substantial cumulative undiscounted losses of €52–61 billion through repeated restriction episodes rather than isolated extreme events. The present value of total GDP losses ranges between €8.4 and €41.4 billion depending on the discount rate applied (1%, 3% and 5%). Losses concentrate in service sectors due to strong intersectoral propagation effects, despite agriculture exhibiting the highest direct water dependence. The framework provides a transferable approach for assessing long-term climate-driven drought costs in metropolitan urban or regional economies.