There are three major categories of drought based on where in the water cycle the moisture deficit occurs: meteorological drought, hydrological drought, and agricultural or ecological drought. A meteorological drought occurs due to lack of precipitation. A hydrological drought is related to low runoff, streamflow, and reservoir and groundwater storage. An agricultural or ecological drought is causing plant stress from a combination of evaporation and low soil moisture. Some organizations add another category: socioeconomic drought occurs when the demand for an economic good exceeds supply as a result of a weather-related shortfall in water supply. The socioeconomic drought is a similar concept to water scarcity.

The different categories of droughts have different causes but similar effects:
199 Meteorological drought occurs when there is a prolonged time with less than average precipitation. Meteorological drought usually precedes the other kinds of drought. As a drought persists, the conditions surrounding it gradually worsen and its impact on the local population gradually increases.
299 Hydrological drought happens when water reserves available in sources such as aquifers, lakes and reservoirs fall below average or a locally significant threshold. Hydrological drought tends to present more slowly because it involves stored water that is used but not replenished. Due to the close interaction with water use, this type of drought is can be heavily influenced by water management. Both positive and negative human influences have been discovered and strategic water management strategies seem key to mitigate drought impact. Like agricultural droughts, hydrological droughts can be triggered by more than just a loss of rainfall. For instance, around 2007 Kazakhstan was awarded a large amount of money by the World Bank to restore water that had been diverted to other nations from the Aral Sea under Soviet rule. Similar circumstances also place their largest lake, Balkhash, at risk of completely drying out.
399 Agricultural or ecological droughts affect crop production or ecosystems in general. This condition can also arise independently from any change in precipitation levels when either increased irrigation or soil conditions and erosion triggered by poorly planned agricultural endeavors cause a shortfall in water available to the crops.

Several indices have been defined to quantify and monitor drought at different spatial and temporal scales. A key property of drought indices is their spatial comparability, and they must be statistically robust. Drought indices include:
• Palmer drought index (sometimes called the Palmer drought severity index (PDSI)): a regional drought index commonly used for monitoring drought events and studying areal extent and severity of drought episodes. The index uses precipitation and temperature data to study moisture supply and demand using a simple water balance model.
• Keetch-Byram Drought Index: an index that is calculated based on rainfall, air temperature, and other meteorological factors.
• Standardized precipitation index (SPI): It is computed based on precipitation, which makes it a simple and easy-to-apply indicator for monitoring and prediction of droughts in different parts of the world. The World Meteorological Organization recommends this index for identifying and monitoring meteorological droughts in different climates and time periods.
• Standardized Precipitation Evapotranspiration Index (SPEI): a multiscalar drought index based on climatic data. The SPEI accounts also for the role of the increased atmospheric evaporative demand on drought severity. Evaporative demand is particularly dominant during periods of precipitation deficit. The SPEI calculation requires long-term and high-quality precipitation and atmospheric evaporative demand datasets. These can be obtained from ground stations or gridded data based on reanalysis as well as satellite and multi-source datasets.
• Indices related to vegetation: root-zone soil moisture, vegetation condition index (VDI) and vegetation health index (VHI). The VCI and VHI are computed based on vegetation indices such as the normalized difference vegetation index (NDVI) and temperature datasets.
• Deciles index
• Standardized runoff index
High-resolution drought information helps to better assess the spatial and temporal changes and variability in drought duration, severity, and magnitude at a much finer scale. This supports the development of site-specific adaptation measures.

The application of multiple indices using different datasets helps to better manage and monitor droughts than using a single dataset, This is particularly the case in regions of the world where not enough data is available such as Africa and South America. Using a single dataset can be limiting, as it may not capture the full spectrum of drought characteristics and impacts.

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Mechanisms of producing precipitation include convective, stratiform, and orographic rainfall. Convective processes involve strong vertical motions that can cause the overturning of the atmosphere in that location within an hour and cause heavy precipitation, while stratiform processes involve weaker upward motions and less intense precipitation over a longer duration.

Precipitation can be divided into three categories, based on whether it falls as liquid water, liquid water that freezes on contact with the surface, or ice.

Droughts occur mainly in areas where normal levels of rainfall are, in themselves, low. If these factors do not support precipitation volumes sufficiently to reach the surface over a sufficient time, the result is a drought. Drought can be triggered by a high level of reflected sunlight and above average prevalence of high pressure systems, winds carrying continental, rather than oceanic air masses, and ridges of high pressure areas aloft can prevent or restrict the developing of thunderstorm activity or rainfall over one certain region. Once a region is within drought, feedback mechanisms such as local arid air, hot conditions which can promote warm core ridging, and minimal evapotranspiration can worsen drought conditions.
Within the tropics, distinct, wet and dry seasons emerge due to the movement of the Intertropical Convergence Zone or Monsoon trough. The dry season greatly increases drought occurrence, and is characterized by its low humidity, with watering holes and rivers drying up. Because of the lack of these watering holes, many grazing animals are forced to migrate due to the lack of water in search of more fertile lands. Examples of such animals are zebras, elephants, and wildebeest. Because of the lack of water in the plants, bushfires are common. Since water vapor becomes more energetic with increasing temperature, more water vapor is required to increase relative humidity values to 100% at higher temperatures (or to get the temperature to fall to the dew point). Periods of warmth quicken the pace of fruit and vegetable production, increase evaporation and transpiration from plants, and worsen drought conditions.
The El Niño–Southern Oscillation (ENSO) phenomenon can sometimes play a significant role in drought. ENSO comprises two patterns of temperature anomalies in the central Pacific Ocean, known as La Niña and El Niño. La Niña events are generally associated with drier and hotter conditions and further exacerbation of drought in California and the Southwestern United States, and to some extent the U.S. Southeast. Meteorological scientists have observed that La Niñas have become more frequent over time.

Conversely, during El Niño events, drier and hotter weather occurs in parts of the Amazon River Basin, Colombia, and Cent…

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