Pricing of irrigation water under alternative charging methods: Possible shortcomings of a volumetric approach

Dono, Gabriele; Giraldo, Luca; Severini, Simone

doi:10.1016/j.agwat.2010.06.013

Cited by 42 publications

(26 citation statements)

References 5 publications

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“…watpump md,ty,t ≤ Awell md,ty,t ∀ md, ty, t (6) The potential to pump is constrained by the , , availability, which depends on the number and capacity of the wells.…”

Section: The Economic Territorial Modelmentioning

confidence: 99%

“…In particular, under the conditions of the irrigation-based agriculture practiced in arid areas of the European Mediterranean, complying with the general principles of the WFD could be inconsistent with meeting its individual objectives. For example, recovery of the complete cost of water services by increasing irrigation payments could lead to problems in protecting the resource, as it would encourage farmers to use alternative water sources [5], including groundwater or rivers [6]. Furthermore, in the case of under-utilization of facilities for irrigation water supply, attaining full cost recovery involves fees calculated on the basis of average costs; this could result in fees much higher than marginal costs [7].…”

Section: Introductionmentioning

confidence: 99%

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Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information

Giraldo

Cortignani

Dono

2014

Water

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This study evaluated the implementation of a volumetric and cost-recovery pricing method for irrigation water under symmetric information conditions without the inclusion of implementation costs. The study was carried out in two steps. First, a cost function was estimated for irrigation water supplied by a water user association to a typical Mediterranean agricultural area, based on a translog function. Second, the economic impact of a pricing method designed according to this cost function was simulated using a mathematical programming territorial model for the same agricultural area. The outcomes were compared with those for the current pricing method. The impacts of this pricing method are discussed in terms of its neutral effects on total farm income and, conversely, the importance of the redistributive effects.

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“…watpump md,ty,t ≤ Awell md,ty,t ∀ md, ty, t (6) The potential to pump is constrained by the , , availability, which depends on the number and capacity of the wells.…”

Section: The Economic Territorial Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information

Giraldo

Cortignani

Dono

2014

Water

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“…Economists often promote pricing as an effective mechanism for communicating scarcity conditions. Yet, pricing water often is difficult to implement, for political or cultural reasons, and water tariffs can be difficult to modify, once in place [192][193][194]. Nonetheless, it is helpful to consider water prices as a policy option, alongside other interventions, such as water allocations, withdrawal limits, pumping restrictions, rotational deliveries, and cropping pattern restrictions.…”

Section: Water Policy Institutions and Incentivesmentioning

confidence: 99%

Achieving Water and Food Security in 2050: Outlook, Policies, and Investments

Wichelns

2015

Agriculture

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Food production in 2050 will be sufficient, globally, but many of the poor will remain food insecure. The primary cause of food insecurity will continue to be poverty, rather than inadequate food production. Thus, policies and investments that increase the incomes of the poor will remain the best ways to extend food security to all. Investments that promote growth in sustainable agriculture and provide non-farm employment opportunities in rural areas of lower income countries will be most helpful. There will be sufficient water, globally, to achieve food production goals and sustain rural and urban livelihoods, if we allocate and manage the resource wisely. Yet, water shortages will constrain agricultural production and limit incomes and livelihood opportunities in many areas. Policies and investments are needed to extend and ensure access to water for household use and agricultural production. Challenges requiring the attention of policy makers and investors include increasing urbanization and increasing demands for land and water resources. Policy makers must ensure that farmers retain access to the water they need for producing food and sustaining livelihoods, and they must create greater opportunities for women in agriculture. They must also motivate investments in new technologies that will enhance crop and livestock production, particularly for smallholders, and encourage the private sector to invest in activities that create employment opportunities in rural areas.

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“…In this sense, water pricing policies are proposed to generate incentives for users to make a more efficient use of irrigation water [4]. However, the unwillingness to pay for water often results in the total avoidance of payment and the non-technical application of irrigation [5]. Therefore, the formulation of price policies requires a continuous assessment of the economic impact of the application of the stated policy on the behavior of farmers [6].…”

Section: Introductionmentioning

confidence: 99%

“…In countries with a deficient institutional presence, a price structure on irrigation water requires an analysis of the implementation capacity in certain segments of farmers in regards to the benefits involved [5]. In some cases, agricultural water prices have been applied to discourage waste [25].…”

Section: Introductionmentioning

confidence: 99%

The Impact of Pricing Policies on Irrigation Water for Agro-Food Farms in Ecuador

Franco-Crespo

Viñas

2017

Sustainability

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Abstract:The institutional reform of the State established in Ecuador during the last decade has aimed at regaining control of specific sectors such as the consumptive use of water. Since 2014, regulation, consumption, and use of water, especially in agriculture, have been analyzed through policies and fiscal instruments. This research presents itself in the context of the simulation of scenarios using positive mathematical programming, to analyze the economic impact of pricing policies on agro-food farms. Policies of fixed costs, water blocks, and volumetric prices are evaluated. The results show that the existing fixed costs do not reduce water consumption. In contrast, the scenarios of water blocks and volumetric prices impact on the behavior of farmers. The tendency of water consumption to the application of volumetric prices demonstrates that banana farms have a greater tolerance to the increase of water costs. On the other hand, the response to an increase in cost in the case of cacao, sugar cane, and rice depends on the productivity of farmers. The negative effects can lead to the abandonment of agriculture. Thus, volumetric policies are more efficient in reducing water consumption as well as in recovering the costs of the irrigation system.

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Pricing of irrigation water under alternative charging methods: Possible shortcomings of a volumetric approach

Cited by 42 publications

References 5 publications

Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information

Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information

Achieving Water and Food Security in 2050: Outlook, Policies, and Investments

The Impact of Pricing Policies on Irrigation Water for Agro-Food Farms in Ecuador

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