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

Giraldo, Luca; Cortignani, Raffaele; Dono, Gabriele

doi:10.3390/w6051204

Cited by 10 publications

(4 citation statements)

References 25 publications

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“…The results also suggest that farmers growing more crops (multiple and/or more of the same) are willing to pay extra for the use of more water, and the WTP is higher for scheme irrigators and Ndumo-B compared to other farmers. This finding suggests that irrigation water pricing should reflect irrigation intensity leading to efficient water allocation outcomes, an argument also put forward by Giraldo et al (2014). Although the initial cost might end up being prohibitive to resource-poor farmers (Abu-Zeid, 2001), volumetric water pricing remains the best option for improving efficient utilization of water in smallholder irrigation.…”

Section: Farmers' Wtp For Different Attributesmentioning

confidence: 98%

Smallholder willingness to pay and preferences in the way irrigation water should be managed: a choice experiment application in KwaZulu-Natal, South Africa

Chipfupa

Wale

2019

WSA

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Efficient and sustainable utilization of irrigation water is the key to realizing the objective of enhancing agricultural productivity and commercializing smallholder irrigation farming. Valuing and recognizing the scarcity of irrigation water is essential for its sustainable use. Using cross-sectional data from 328 smallholders in and around Makhathini and Ndumo-B irrigation schemes in KwaZulu-Natal Province, the study aimed to assess smallholder farmers’ preferences for the way irrigation water resources should be managed and their willingness to pay for irrigation water. This was done employing a choice experiment method. The results suggest the need for irrigation water pricing to reflect irrigation intensity. They also show that improving agricultural production and productivity, with market access can enhance farmers’ willingness and ability to pay for irrigation water. The need to consider multiple uses of irrigation water for sustainable utilization of water resources is evident, while supporting women smallholders will have a positive impact on their willingness to pay for irrigation water. The paper recommends a shift towards on-farm volumetric water pricing in the irrigation schemes. The schemes should also have clearly defined boundaries and enforceable rules on collective use of water. The design of irrigation infrastructure should integrate other uses of irrigation water such as domestic and livestock purposes. Consequently, there is a need for further research to ensure that irrigation water prices reflect the marginal value of irrigation water use. Policies should address factors that inherently result in gender differences in terms of access to productive resources which negatively affect sustainable water utilization.

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Section: Farmers' Wtp For Different Attributesmentioning

confidence: 98%

Smallholder willingness to pay and preferences in the way irrigation water should be managed: a choice experiment application in KwaZulu-Natal, South Africa

Chipfupa

Wale

2019

WSA

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“…Virtually all analyses of the effects of price increases in irrigation predict that the agricultural sector would be severely hit by higher water prices (Mejías et al, 2004;Riesgo & Gómez-Limón, 2006;Giannoccaro et al, 2010;Balali et al, 2011;GallegoAyala et al, 2011;Giraldo et al, 2014;Kahil et al, 2016). Irrigated agriculture is very important in rural areas of southern Europe, and the social impacts of water pricing on rural economies are likely to be high (Gómez-Limón & Riesgo, 2012) and to raise local opposition.…”

Section: Analysed Management Measuresmentioning

confidence: 99%

Combining economic policy instruments with desalinisation to reduce overdraft in the Spanish Alto Guadalentín aquifer

Martínez-Granados

Calatrava

2016

Water Policy

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This paper analyses the cost-effectiveness of combining several economic policy instruments to address the problem of non-renewable pumping in the Alto Guadalentín aquifer in southeastern Spain, one of the most extreme cases of aquifer depletion in Europe. Our results show that all instruments have significant economic impacts. However, the future availability of desalinisation would notably mitigate these impacts, as farmers can substitute groundwater with desalinised water. Although a complete ban on non-renewable pumping and an environmental tax on withdrawals imply the lowest level of public expenditure, they are very unpopular and have a large political cost. The buyback of groundwater rights and the subsidisation of desalinisation in exchange for reducing withdrawals are likely to be much better received by farmers, as their cost would be charged to the public budget. A combination of instruments would split the cost of aquifer recovery between farmers and the administration and would therefore possibly not meet with as much opposition from stakeholders.

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“…The cost of water and the other factors intrinsic to the activity in question must be considered, such as the exploited product, the market and the agronomic, economic, social and environmental variables. Studies on the establishment of the water tariff to irrigation based on the ability to pay and cost recovery have been carried out by Chifamba, Nyanga and Gukurume (2013) and Giraldo, Cortignani and Dono (2014). Pereira (2003) also defends the capacity to pay as a benchmark element for the water tariff, and conditions the tax to the financial and economic impact on the sector.…”

Section: The Establishment Of the Water Tariffmentioning

confidence: 99%

Calculation method for charging water on shrimp farming

Monteiro

Borges

Studart

et al. 2016

RBRH

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The increase of global water demand has stimulated the application of water charging to seek its rational use. However, the establishment of the water tariff for a certain use is not an easy task, given that this tariff must have an elevated value, sufficient to encourage the rational use, but not so elevated, in a manner that compromises or prevents the development of production activities. The present study aimed to evaluate different water tariff values proposed and applied to the shrimp farming industry in Ceará, from 2003Ceará, from to 2016, and analyze the sensitivity of the industry to these values. The analyses considered the productive performance of the shrimp farming observed by the producers, production costs for the activity, and incomes earned by the producers in 2008. The present study demonstrated that the only tariff value that makes the sector financially attractive is R$1.00/1,000m 3 , a lower value than the one previously proposed by the state of Ceará (R$ 31.20/1,000m 3 ), which was reduced in the following years. In this context, a model was developed to fix tariffs for shrimp farming, which considers the payment capacity of the entrepreneur and the production costs to cultivate shrimp. Keywords: Water charging; Payment capacity; Shrimp farming. RESUMOO aumento na demanda pela água no mundo estimulou a aplicação da cobrança na busca pelo uso racional dos recursos hídricos. A fixação da tarifa de água para um determinado uso não é fácil, dado que ela deve ter um valor elevado o bastante que incentive o seu uso racional, porém não elevado o suficiente que comprometa ou impeça o desenvolvimento de atividades produtoras. Este estudo avalia diferentes valores de tarifa sugeridos e aplicados ao setor da carcinicultura no Ceará no período de 2003 a 2016 e analisa a sensibilidade do setor a esses valores. Foram considerados os resultados zootécnicos da atividade, bem como os custos de produção e receitas auferidas pelos produtores no ano de 2008. O estudo mostrou que o único valor de tarifa que torna o setor financeiramente atraente para este uso é o de R$ 1,00/1.000m 3 , valor bem abaixo do inicialmente proposto pelo Estado (R$ 31,20/1.000m 3 ), o qual foi reduzido em anos posteriores. Neste contexto, foi desenvolvido um modelo para fixação de tarifas para a carcinicultura, o qual considera a capacidade de pagamento dos empresários e o custo de produção dos camarões.

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

Cited by 10 publications

References 25 publications

Smallholder willingness to pay and preferences in the way irrigation water should be managed: a choice experiment application in KwaZulu-Natal, South Africa

Smallholder willingness to pay and preferences in the way irrigation water should be managed: a choice experiment application in KwaZulu-Natal, South Africa

Combining economic policy instruments with desalinisation to reduce overdraft in the Spanish Alto Guadalentín aquifer

Calculation method for charging water on shrimp farming

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