Price Volatility and Water Demand in Agriculture: A Case Study of the Guadalquivir River Basin (Spain)

Pérez-Blanco, C. Dionisio; Gómez, Carlos Mario Gómez; Berbel, Julio; Gutiérrez‐Martín, Carlos

doi:10.1201/b17309-19

Cited by 8 publications

(6 citation statements)

References 31 publications

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“…Temporally, microeconomic models such as the PMAUP model run on a yearly basis (Graveline, ), while the SWAT model runs on a daily basis. To circumvent this temporal divergence, some considerations are made: (i) the microeconomics model simulates the preferences of farmers (i.e., crop portfolio) at the beginning of the crop season; (ii) decisions made by farmers at the beginning of a crop season are nonvariable throughout that year (Gómez‐Limón et al, ; Gutiérrez‐Martín et al, ); (iii) the decisions taken by farmers are passed to the hydrologic model at the beginning of the year, and parameters are updated accordingly (e.g., switch to a new crop type or reduction in the amount of water withdrawn for irrigation); and (iv) the feedback from the hydrologic to the microeconomic model are passed as an average yearly value. The yearly value is obtained by averaging the water availability from the irrigation source during the crop season at the end of every year (provided by the eco‐hydrologic model), while being consistent with the way economic attributes are defined in the microeconomic model (i.e., first and second moments of a multiannual time series; see section 3.2.1).…”

Section: Methodsmentioning

confidence: 99%

“…In the RMRB, AWDUs offer the lowest spatial disaggregation level with comprehensive and readily available socio‐economic data, hence being considered as the decision‐making socio‐economic agents in this case study. The process of aggregating individual farmers into groups to represent economic agents is well documented in the literature (Gómez‐Limón et al, ; Gutiérrez‐Martín et al, ), also through the use of AWDUs (Martínez‐Granados & Calatrava, ; Pérez‐Blanco & Gutiérrez‐Martín, ). AWDUs may be composed of one or more HERUs, depending on soil, land use, and topographic characteristics of the spatial area the AWDU covers.…”

Section: Implications Of Water Policy In a Rational Human‐water Systemmentioning

confidence: 99%

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Rationalizing Systems Analysis for the Evaluation of Adaptation Strategies in Complex Human‐Water Systems

2018

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Water resources management is a nontrivial process requiring a holistic understanding of the factors driving the dynamics of human‐water systems. Policy‐induced or autonomous behavioral changes in human systems may affect water and land management, which may affect water systems and feedback to human systems, further impacting water and land management. Currently, hydro‐economic models lack the ability to describe such dynamics either because they do not account for the multifactor/multioutput nature of these systems and/or are not designed to operate at a river basin scale. This paper presents a flexible and replicable methodological framework for integrating a microeconomic multifactor/multioutput Positive Multi‐Attribute Utility Programming (PMAUP) model with an eco‐hydrologic model, the Soil and Water Assessment Tool (SWAT). The connection between the models occurs in a sequential modular approach through a common spatial unit, the “hydrologic‐economic representative units” (HERUs), derived from the boundaries of decision‐making entities and hydrologic responsive units. The resulting SWAT‐PMAUP model aims to provide the means for exploring the dynamics between the behavior of socio‐economic agents and their connection with the water system through water and land management. The integrated model is illustrated by simulating the impacts of irrigation restriction policies on the Río Mundo subbasin in south‐eastern Spain. The results suggest that agents' adaptation strategies in response to the irrigation restrictions have broad economic impacts and subsequent consequences on surface and groundwater hydrology. We suggest that the integrated modeling framework can be a valuable tool to support decision‐making in water resources management across a wide range of scales.

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Section: Methodsmentioning

confidence: 99%

Section: Implications Of Water Policy In a Rational Human‐water Systemmentioning

confidence: 99%

Rationalizing Systems Analysis for the Evaluation of Adaptation Strategies in Complex Human‐Water Systems

2018

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“…Where cost-recovery levels are higher, this usually reflects the users' ability to pay and typically has limited impact on withdrawals. For example, the Guadalquivir River basin has the highest (water infrastructure) cost-recovery ratio in Spain (98%) but displays an inelastic response to charges (Gutiérrez-Martín, Blanco, Gómez, & Berbel, 2014) and has one of the highest Water Exploitation Indices in Europe (Figure 1). This situation can be aggravated where revenues raised through water levies are not directed towards water policies that mitigate the negative impacts of over-allocation, as in Italy (Santato et al, 2016).…”

Section: Water Chargesmentioning

confidence: 99%

Role of economic instruments in water allocation reform: lessons from Europe

Rey

Pérez-Blanco

Escriva-Bou

et al. 2018

International Journal of Water Resources Development

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a cranfield Water science Institute, cranfield university, uK; b raas Division, centro euro-mediterraneo sui cambiamenti climatici (cmcc), venice, Italy; c Department of economics, universidad de alcalá, alcalá de Henares, spain; d fondazione eni enrico mattei (feem), venice, Italy; e Water policy center, public policy Institute of california, san francisco, usa; f fundación observatorio del cambio climático, valencia, spain; g Institute for environmental studies (Ivm), vu university amsterdam ABSTRACT A growing number of countries are reforming their water allocation regimes through the use of economic instruments. This article analyzes the performance of economic instruments in water allocation reforms compared against their original design objectives in five European countries: England, France, Italy, Spain and the Netherlands. We identify the strengths of, barriers to and unintended consequences of economic instruments in the varying socio-economic, legal, institutional and biophysical context in each case study area, and use this evidence to draw out underlying common guidelines and recommendations. These lessons will help improve the effectiveness of future reforms while supporting more efficient water resources allocation.

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“…In this paper, we use a projection method (Gutiérrez-Martín et al 2014;Gutiérrez-Martín and Gómez 2011), in which the optimization problem in Eqs. (8)- (12) is solved for the observed values of z k ðxÞ, i.e., z k ðxÞ ¼ c ¼ z ○ k ðxÞ.…”

Section: Efficient Frontier and Tangency Pointmentioning

confidence: 99%

“…Although revealed preference principles have been mostly used in economic theory (Varian 2006), empirical analyses have been conducted for decades now (Varian 2012). The seminal work by Gutiérrez-Martín and Gómez (2011) has applied revealed preference principles to water resources management and farm modeling, and a number of applications have since been developed (Gutiérrez-Martín et al 2014;Pérez-Blanco et al 2016.…”

Section: Introductionmentioning

confidence: 99%

Economic Impacts of Irrigation-Constrained Agriculture in the Lower Po Basin

Pérez-Blanco

Koks

Calliari

et al. 2018

Water Econs. Policy

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Climate change, increasing demand for water, higher environmental standards and inelastic water supply suggest that future drought response in Southern Europe would require more efficient management of water use. In this context, there is a pressing need for a better understanding of the economic impacts of irrigation restrictions, including their microeconomic and broad economic repercussions. This paper connects a multi-attribute Revealed Preference Model working at an agricultural district level with a regionally calibrated supply and use model that combines nonlinear programming and input-output modeling techniques to address water allocation issues. To the best of our knowledge, this is the first time these two modeling approaches are combined in this fashion. Methods are illustrated with an application to the Lower Po River Basin (LPRB) in the Emilia Romagna Region, Italy. Results show that irrigation restrictions generate rising incremental losses in the agricultural districts of the LPRB, which are amplified through negative inter-sectorial feedbacks at a regional level.

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Price Volatility and Water Demand in Agriculture: A Case Study of the Guadalquivir River Basin (Spain)

Cited by 8 publications

References 31 publications

Rationalizing Systems Analysis for the Evaluation of Adaptation Strategies in Complex Human‐Water Systems

Rationalizing Systems Analysis for the Evaluation of Adaptation Strategies in Complex Human‐Water Systems

Role of economic instruments in water allocation reform: lessons from Europe

Economic Impacts of Irrigation-Constrained Agriculture in the Lower Po Basin

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