Abstract

This chapter provides a framework for economic risk assessment in regions where soil salinization poses a significant threat to agriculture and to local or national economies, drawing on case studies from the North Sea Region of Europe. The analysis shows that there is a significant economic impact of salinization, with wide variation in the magnitude within and between North Sea Region countries. Further, we find that the magnitude of the impact of salinization critically depends on the type of salinization process, the degree and severity of salinity, the types (and value) of crops grown, farm-level adaptation decisions such as the use of salt-tolerant crops as well as external shocks such as sea-level rise due to climate change. The results of the study should provide a baseline for determining the economic costs of salinization and should inform the assessment of adaptation measures and the potential for saline agriculture.