Water Pricing Policy and Subsidies to Irrigation: a Review

Toan, Truong Duc

doi:10.1007/s40710-016-0187-6

Cited by 31 publications

(17 citation statements)

References 73 publications

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“…Cost recovery can be achieved by individual farms in the case of full information (first best), while it can be achieved only on the aggregate in case of asymmetric information. The concept of full cost recovery in its wider form is better tackled by [29,30].…”

Section: Methodsmentioning

confidence: 99%

Pricing Unmetered Irrigation Water under Asymmetric Information and Full Cost Recovery

Lika

Galioto

Scardigno

et al. 2016

Water

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Abstract:The objective of this study is to define an efficient pricing scheme for irrigation water in conditions of unmetered water use. The study is based on a principal-agent model and identifies a menu of contracts, defined as a set of payments and share of irrigated area, able to provide incentives for an efficient use of the resource by maximizing social welfare. The model is applied in the case study of the Çukas region (Albania) where irrigation water is not metered. The results demonstrate that using a menu of contracts makes it possible to define a second best solution that may improve the overall social welfare derived from irrigation water use compared with the existing pricing structure, though, in the specific case study, the improvement is small. Furthermore, the results also suggest that irrigation water pricing policy needs to take into account different farm types, and that appropriate contract-type pricing schemes have a potential role in providing incentives to farmers to make irrigation choices to the social optimum.

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Section: Methodsmentioning

confidence: 99%

Pricing Unmetered Irrigation Water under Asymmetric Information and Full Cost Recovery

Lika

Galioto

Scardigno

et al. 2016

Water

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“…Irrigation subsidies lead to over-use of water, inefficiencies and inequality, as irrigation is often allocated by land holding area and thus any subsidies disproportionately benefit larger and wealthier farmers ( Gany, Sharma, & Singh, 2019 ). Two types of subsidies are frequently employed ( Brelle and Dressayre, 2014 , Kjellingbro and Skotte, 2005 , Toan, 2016 , Ward, 2010 ). Irrigation water is often priced below its cost of supply, and may not even cover the operation and maintenance costs of irrigation systems.…”

Section: A Post-pandemic Strategy For Low and Middle-income Countriesmentioning

confidence: 99%

Sustainability and development after COVID-19

2020

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Highlights Before the pandemic progress toward some SDGs was lacking. Post-pandemic here may be less financing for attaining the SDGs. Affordable policies that meet several SDGs simultaneously are needed. Fossil fuel and irrigation subsidy swaps to end water and energy poverty. Tropical carbon tax to fund natural climate solutions.

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“…However, these behavioral changes may aggravate conflicts between government and farmers, and even cause policy failures due to the decline of farmer income [61,62]. From the result of Scenario 3, by introducing agricultural subsidy policies, governments can effectively avoid the negative externality effects caused by water-pricing policy while taking into account the profitability of farming [63][64][65]. At the same time, Scenario 4 shows that under the multi-policy conditions, although abandoning farmland caused the economic loss, it will increase the ESV of the land, because increasing the prices of water reduces the area of cultivated land and results in changes in land-use types [66].…”

Section: Discussionmentioning

confidence: 99%

Evaluation of Agricultural Water Pricing in an Irrigation District Based on a Bayesian Network

Zhu

Zhang

Yuan

et al. 2018

Water

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In recent years, the large-scale development of land and water resources has led to a conflict between water supply and demand. Especially in arid regions, fragile ecosystems and continuous farmland expansion have threatened the ecological and social security of river basins. Therefore, it is urgent to propose scientific and reasonable water resource management models to alleviate this conflict. Based on the principle of "the strictest water resource management measures" for river basin water resources, this study has taken Heshuo County, Xinjiang as the research object, using a full-cost method to determine agricultural water prices for the irrigation district at 0.35 RMB/m 3 and 1.4 RMB/m 3. With the participation of stakeholders and experts, current water rights trading and management systems were analyzed by a Bayesian network (BN) model. In addition, the impact of water-pricing policy on farmers' planting behavior was also quantified. The results indicated that an increase in water prices can effectively reduce agricultural water consumption for irrigation, but it would also induce negative externalities involving groundwater (GW) preservation and farmers' income. A water resource management model mainly directed by water-pricing policy, and supplemented by GW protection and agricultural subsidy policies, could effectively regulate farmers' water-use behavior, guarantee farmers' income, and protect GW. This study provides a successful management approach for coordinating the relationship between agricultural water resources and the ecological environment in an arid basin watershed and promoting the efficient use of agricultural water resources in irrigated areas.

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Water Pricing Policy and Subsidies to Irrigation: a Review

Cited by 31 publications

References 73 publications

Pricing Unmetered Irrigation Water under Asymmetric Information and Full Cost Recovery

Pricing Unmetered Irrigation Water under Asymmetric Information and Full Cost Recovery

Sustainability and development after COVID-19

Evaluation of Agricultural Water Pricing in an Irrigation District Based on a Bayesian Network

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