Volatility is the most widespread measure of risk. Volatility modeling allows investors to capture potential losses and investment opportunities. This work aims to examine the impact of the two waves of COVID-19 infections on the return and volatility of the stock market indices of the euro area countries. The study also focuses on other important aspects such as time-varying risk premium and leverage effect. Thus, this investigation employed the Threshold GARCH(1,1)-in-Mean model with exogenous dummy variables. Daily returns of ten euro area stock indices from 4th January 2016 to 31th December 2020 has been used for the analysis. The results reveal that euro area stock markets respond differently to the COVID-19 pandemic. Specifically, the first wave of COVID-19 infections had a notable impact on stock market volatility of euro area countries with large and middle financial centres while the second wave had a significant impact only on stock market volatility of Belgium.

The assessment of aridity conditions is a key factor for water management and the implementation of mitigation and adaptation policies in agroforestry systems. Towards this aim three aridity indices were computed for the Iberian Peninsula (IP): the De Martonne Index (DMI), the Pinna Combinative Index (PCI), and the Erinç Aridity Index (EAI). These three indices were first computed for the baseline period 1961‒1990, using a gridded observational data (E-OBS), and, subsequently, for the periods 2011‒2040 (short-range) and 2041‒2070 (medium-range) using an ensemble of six Regional Climate Models (RCMs) experiments generated by the EURO-CORDEX project. Two Representative Concentration Pathways (RCPs) were analyzed, an intermediate anthropogenic radiative forcing scenario (RCP4.5) and a fossil-intensive emission scenario (RCP8.5). Overall, the three indices disclose a strengthening of aridity and dry conditions in central and southern Iberia until 2070, mainly under RCP8.5. Strong(weak) statistically significant correlations were found between these indices and the total mean precipitation (mean temperature) along with projected significant decreasing(increasing) trends for precipitation(temperature). The prevalence of years with arid conditions (above 70% for 2041‒2070 under both RCPs) are projected to have major impacts in some regions, such as southern Portugal, Extremadura, Castilla-La Mancha, Comunidad de Madrid, Andalucía, Región de Murcia, Comunidad Valenciana, and certain regions within the Aragón province. The projected increase in both the intensity and persistence of aridity conditions in a broader southern half of Iberia will exacerbate the exposure and vulnerability of this region to climate change, while the risk of multi-level desertification should be thoroughly integrated into regional and national water management and planning.