Drought Risk Management Using Satellite-Based Rainfall Estimates

In this chapter, we present an overview of the role of satellite-based rainfall estimates (SREs) in drought risk management applications, ranging from simple anomaly and index-based approaches to cross-cutting drought early warning systems (EWS) and financial instruments such as weather index-based insurance (WII) schemes. We contend that meteorological, hydrological, agricultural, and socioeconomic are aspects – not types – of drought, and a universally acceptable drought definition is not a prerequisite for the effective and efficient assessment of the impacts of drought using SREs and other satellite-based datasets and/or models. This is illustrated through examples from the work of the co-authors, as well as the wider community. The chapter concludes with a synthesis of the challenges for SREs and the current trends in the development and application of SREs in drought risk management, including an outlook of the priorities for future research and applications.