Irrigation water pricing: policy implications based on international comparison

Tsur, Yacov; Dinar, Ariel; Doukkali, Rachid; Roe, Terry L.

doi:10.1017/s1355770x04001494

Cited by 55 publications

(41 citation statements)

References 7 publications

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“…In the extensive literature existing on the economic assessment of irrigation water the valuation methods encountered differ both in the approach used and in the obtained results. A review of the approaches to estimate the economic value of water can be found in the work of Young (2005), and more specifically to irrigation water in Tsur and Dinar (1999), Johansson et al (2002) and Tsur et al (2004). This research selects the production function method which is a deductive method that involves the derivation of shadow prices where water is an input into production systems.…”

Section: Methodsmentioning

confidence: 99%

Estimating marginal value of water for irrigated olive grove with the production function method

Mesa-Jurado¹,

Berbel²,

Orgaz

1970

Span. j. agric. res.

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Economic valuation of irrigation water is done through the use of production functions for the case of the olive grove. In order to do so the integration of an agronomic model (based on the production function) and an economic model linked to the profitability of the crop (the ratio of revenue and operating costs) in the area under study is proposed. The study case encompasses the Guadalbullon River Sub-basin area, belonging to the Guadalquivir River Hydrologic Demarcation (Southern Spain). Within the overall deficit of the Guadalquivir River basin, the Guadalbullon River poses a special problem as it is unregulated and there are important irrigated fields on its banks, most of them olive groves. Net marginal value of water obtained (having deducted the variable costs of production including harvesting and irrigation) is€ 0.60 m–3 for the allocation of 1,000 m3 ha–1 and € 0.53 m–3 for the water right allowance of 1,500 m3 ha–1 (average for period 2005/2008). The results obtained support the recommendation by other authors suggesting the use of deficit irrigation in olive, additionally the high value of water estimated contributes to explain the substantial increase in irrigated olive area in Andalucia.

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Section: Methodsmentioning

confidence: 99%

Estimating marginal value of water for irrigated olive grove with the production function method

Mesa-Jurado¹,

Berbel²,

Orgaz

1970

Span. j. agric. res.

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“…Several studies in Spain support those previous findings, but also find that water pricing policy involves disproportionate costs to farmers [17,18]. In contrast, Tsur et al [19] indicate that water pricing could achieve an efficient allocation of irrigation water without damaging farmers' benefits, if the pricing policy guarantees that all or part of the revenue collected by water agencies remains in the area and is reinvested in improving water use efficiency.…”

Section: Types Of Policy Instrumentsmentioning

confidence: 64%

Improving the Performance of Water Policies: Evidence from Drought in Spain

Kahil

Albiac

Dinar

et al. 2016

Water

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Water scarcity is a critical environmental issue worldwide, especially in arid and semiarid regions. In those regions, climate change projections suggest further reductions in freshwater supplies and increases of the recurrence, longevity and intensity of drought events. At present, one important question for policy debate is the identification of water policies that could address the mounting water scarcity problems. Suitable policies should improve economic efficiency, achieve environmental sustainability, and meet equity needs. This paper develops and applies an integrated hydro-economic model that links hydrological, economic and environmental elements to such issues. The model is used to conduct a direct comparison of water markets, water pricing and institutional cooperation, based on their economic, environmental and equity outcomes. The analysis is performed in the Jucar Basin of Spain, which is a good natural experiment for studying water scarcity and climate change policies. Results indicate that both institutional and water market policies are high performing instruments to limit the economic damage costs of droughts, achieving almost the same social benefits. However, the environmental effects of water markets are worrying. Another important finding is that water pricing is a poor policy option not only in terms of private and environmental benefits but also in terms of equity.

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“…To a certain extent, it makes up the capital gap, and ensures the normal operation of urban sewage treatment facilities and the construction, transformation and maintenance of urban sewage network [38].…”

Section: Discussionmentioning

confidence: 99%

Environmental Water Price Based on Water Environment Capacity and Ecological Water Consumption: A Case Study of Hefei

Duan¹,

Liu²,

Ren³

et al. 2016

GEP

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With the development and reform of water price policy, the most common view is that the total cost of water price can reflect the tradable traits of water resources, which can enhance the water use efficiency and achieve water resources sustainable utilization. Besides in actual pricing operation, from the angle of protection cost, water price characterizes the cost of controlling pollution and protecting water environment. Based on the two factors of water environment capacity and ecological water consumption embodied by the environment water price, this paper puts forward an effective environmental water price calculation model based on three elements of sewage treatment fee, ecological water price and water quality maintenance fee. And this paper takes the data of Hefei as an example, calculates reasonable environmental price, comparing which with the existing price, and finds the main existing problem which needs to be solved urgently in management.

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Irrigation water pricing: policy implications based on international comparison

Cited by 55 publications

References 7 publications

Estimating marginal value of water for irrigated olive grove with the production function method

Estimating marginal value of water for irrigated olive grove with the production function method

Improving the Performance of Water Policies: Evidence from Drought in Spain

Environmental Water Price Based on Water Environment Capacity and Ecological Water Consumption: A Case Study of Hefei

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