Water pricing in irrigation: mapping the debate in the light of experience.

Molle, François; Berkoff, J.

doi:10.1079/9781845932923.0021

Cited by 35 publications

(41 citation statements)

References 184 publications

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“…The cost recovery, efficiency and WDM can be achieved with lower unit price by volumetric based pricing methods. When such pricing method with carefully designed institutional structure is introduced, farmers adopt more efficient and water saving techniques [20]. The WTP estimation showed that volumetric pricing with well defined water rights and improved management of local water governance provide the best result from farmers' perspective.…”

Section: Final Remarksmentioning

confidence: 99%

“…The transaction cost depends on water governance as well as water rights and other water institutions. In the current water scarce situation, volumetric pricing is expected to give the best incentive for farmers to increase water use efficiency (Molle and Berkoff [20]). The cost recovery, efficiency and WDM can be achieved with lower unit price by volumetric based pricing methods.…”

Section: Final Remarksmentioning

confidence: 99%

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Farmers’ preferences for irrigation water demand management tools: a Bayesian analysis of choice behaviour of farmers in Krishna river basin, India

Veettil¹,

Frija²,

Speelman³

et al. 2010

WIT Transactions on Ecology and the Environment

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Policy designers have various water demand management (WDM) strategies to achieve efficient water use and allocation at their disposal, such as setting the price of water, decentralizing irrigation water management or improving the quality of water rights. Interestingly, most of these strategies have been applied individually without focusing on the relations between them. This paper uses a discrete choice model to analyse the scope for and the farmer's acceptance of combinations of irrigation WDM tools. In terms of local irrigation water governance the presence or absence of collective irrigation water management among farmers in the form of water user association (WUA) is considered. Water rights are specified by the duration of the title, by their transferability and by the quality of title. Finally, four types of water pricing methods (area, crop, quota and volumetric pricing) are selected for the experimental design. Using the choice experiment we can elicit the most preferred water pricing method under different water rights, water prices and local irrigation water governance contexts. Our results indicated that under conditions of improved water rights, preference for volumetric pricing increases, while the presence of a WUA decreases this preference. We also showed that making the right combination of WDM tools considerably increases the willingness to pay for a change in scenario.

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Section: Final Remarksmentioning

confidence: 99%

Section: Final Remarksmentioning

confidence: 99%

Farmers’ preferences for irrigation water demand management tools: a Bayesian analysis of choice behaviour of farmers in Krishna river basin, India

Veettil¹,

Frija²,

Speelman³

et al. 2010

WIT Transactions on Ecology and the Environment

View full text Add to dashboard Cite

show abstract

“…"Indirect fees" and "revenue-only" fees are found in some of the smaller canal companies that deliver water to their members on a per-hectare or per-time unit basis. Molle and Berkoff (2008) describe several goals of irrigation pricing, within the context of policy tools. In particular, water pricing can serve as a financial policy tool by ensuring that some portion of the costs of constructing and operating an irrigation project are recovered.…”

Section: Cost Componentsmentioning

confidence: 99%

“…State and federal water agencies and the irrigation districts with which they enter contractual relationships often establish prices that include one or more components reflecting policy goals that align somewhat with the Molle and Berkoff (2008) policy tools. For example, irrigation water prices in the federal Central Valley Project in California include cost recovery charges (financial policy goal) and an environmental restoration charge (environmental policy goal).…”

Section: Cost Componentsmentioning

confidence: 99%

Environmental Effectiveness and Economic Efficiency of Water Use in Agriculture

Young¹

2010

OECD Studies on Water

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The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.The OECD member countries are:

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“…This condition calls for the imposition of flat rates by the water provider, even if the level of use varies. With flat rates, users are taken to have similar access and are charged equally across farms and land [21], i.e., the tariff is the same per hectare of land for all farms. Indeed, the regions supplied by surface irrigation network are usually very large and comprise huge extensive farms irrigating only a small quota of the cultivated agricultural land or specialized small fruit and vegetable farms irrigating most of the cultivated land.…”

Section: Background Literaturementioning

confidence: 99%

Water Authorities’ Pricing Strategies to Recover Supply Costs in the Absence of Water Metering for Irrigated Agriculture

2017

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Most of the irrigated agricultural regions in Europe are supplied by surface irrigation networks managed by local water authorities (WAs). Under such conditions, WAs are not able to fully monitor water usage and farmers have an information advantage vis-a-vis the WA. This results in the water authority suffering 'pricing failure' if it decides to apply an incentive pricing strategy (tariffs proportional to the alleged water uses). Indeed, farmers could exploit their information advantage by behaving in an opportunistic manner, withdrawing more water than declared, and ultimately paying less than they should. This situation could also undermine the efficacy and the efficiency of the WA incentive pricing strategies. This paper analyses incentive water pricing schemes under asymmetric information by the means of a Principal-Agent model. The Agency problem between the WA and farmers is addressed by introducing a monitoring strategy that would enable the WA to detect farms action. In doing so, we compare incentive strategies with flat rate water pricing and investigate under what conditions the WA might provide/not provide incentive water pricing in the absence of water metering.

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Water pricing in irrigation: mapping the debate in the light of experience.

Cited by 35 publications

References 184 publications

Farmers’ preferences for irrigation water demand management tools: a Bayesian analysis of choice behaviour of farmers in Krishna river basin, India

Farmers’ preferences for irrigation water demand management tools: a Bayesian analysis of choice behaviour of farmers in Krishna river basin, India

Environmental Effectiveness and Economic Efficiency of Water Use in Agriculture

Water Authorities’ Pricing Strategies to Recover Supply Costs in the Absence of Water Metering for Irrigated Agriculture

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