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Local water markets for irrigation in southern Spain: A multicriteria approach

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  • Arriaza Balmón, Manuel
  • Gomez-Limon, Jose A.
  • Upton, Martin

Abstract

Spanish authorities have recently approved a new legislative framework for the creation of local water markets to improve allocative efficiency for this scarce resource. This paper analyses the potential impacts of the policy. A utility function for three groups of farmers was elicited, using a method that does not require interaction with the decision‐makers. Utility was measured as a function of the first two moments of the distribution of total gross margin. The utility functions were then used to simulate farmers' responses to changes in the price of water.

Suggested Citation

  • Arriaza Balmón, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 1997. "Local water markets for irrigation in southern Spain: A multicriteria approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), pages 1-23.
    • Handle: RePEc:ags:aareaj:118068
    DOI: 10.22004/ag.econ.118068
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    Cited by:

    1. José A. Gómez-Limón & Laura Riesgo & Manuel Arriaza, 2003. "Multi-Criteria Analysis of Factors Use Level: The Case of Water for Irrigation," Economic Working Papers at Centro de Estudios Andaluces E2003/18, Centro de Estudios Andaluces.
    2. António C. Pinheiro & João Paulo Saraiva, 2005. "Combining the Water Framework Directive with Agricultural Policy Scenarios: A Multi-Objective Analysis for the Future of Irrigated Agricultural in Portugal," Economics Working Papers 2_2005, University of Évora, Department of Economics (Portugal).
    3. Saraiva, Joao Paulo & Pinheiro, Antonio Cipriano, 2007. "A Multi-Criteria Approach for Irrigation Water Management," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(1), pages 1-13, January.
    4. Gomez-Limon, Jose A. & Riesgo, Laura, 2004. "Irrigation water pricing: differential impacts on irrigated farms," Agricultural Economics, Blackwell, vol. 31(1), pages 47-66, July.
    5. Arriaza Balmón, Manuel & Gomez-Limon, Jose Antonio & Gonzalez, Jose & Ruiz, Pedro, 2006. "Viability of the Raw Cotton Production in Spain After the Decoupling of the Subsidies," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25445, International Association of Agricultural Economists.
    6. Blanco-Gutiérrez, Irene & Varela-Ortega, Consuelo & Flichman, Guillermo, 2011. "Cost-effectiveness of groundwater conservation measures: A multi-level analysis with policy implications," Agricultural Water Management, Elsevier, vol. 98(4), pages 639-652, February.
    7. D. Latinopoulos, 2008. "Estimating the Potential Impacts of Irrigation Water Pricing Using Multicriteria Decision Making Modelling. An Application to Northern Greece," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 22(12), pages 1761-1782, December.
    8. Gomez-Limon, Jose Antonio & Berbel, Julio & Arriaza Balmón, Manuel, 2005. "MCDM Farm System Analysis for Public Management of Irrigated Agriculture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24676, European Association of Agricultural Economists.
    9. Gomez-Limon, Jose A. & Martinez, Yolanda, 2006. "Multi-criteria modelling of irrigation water market at basin level: A Spanish case study," European Journal of Operational Research, Elsevier, vol. 173(1), pages 313-336, August.
    10. Basil Manos & Thomas Bournaris & Mohd Kamruzzaman & Moss Begum & Ara Anjuman & Jason Papathanasiou, 2006. "Regional Impact of Irrigation Water Pricing in Greece under Alternative Scenarios of European Policy: A Multicriteria Analysis," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1055-1068.
    11. José A. Gómez-Limón & Yolanda Martínez Martínez, 2004. "Multicriteria Modelling of Irrigation Water Market at Basin Level," Economic Working Papers at Centro de Estudios Andaluces E2004/26, Centro de Estudios Andaluces.
    12. J. Alarcón & L. Juana, 2016. "The Water Markets as Effective Tools of Managing Water Shortages in an Irrigation District," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(8), pages 2611-2625, June.
    13. Joan Pujol & Meri Raggi & Davide Viaggi, 2006. "The potential impact of markets for irrigation water in Italy and Spain: a comparison of two study areas ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 361-380, September.
    14. Berbel, J., 2015. "Nota sobre valor, coste y renta del agua de riego," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(01).
    15. André, Francisco J. & Herrero, Inés & Riesgo, Laura, 2010. "A modified DEA model to estimate the importance of objectives with an application to agricultural economics," Omega, Elsevier, vol. 38(5), pages 371-382, October.
    16. Francisco J. André & Inés Herrero & Laura Riesgo, 2007. "Using a modified DEA model to estimate the importance of objectives. An application to agricultural economics," Working Papers 07.09, Universidad Pablo de Olavide, Department of Economics.
    17. Montilla-López, Nazaret M. & Gómez-Limón, José A. & Gutiérrez-Martín, Carlos, 2018. "Sharing a river: Potential performance of a water bank for reallocating irrigation water," Agricultural Water Management, Elsevier, vol. 200(C), pages 47-59.
    18. José A. Gómez‐Limón & Manuel Arriaza & Julio Berbel, 2002. "Conflicting Implementation of Agricultural and Water Policies in Irrigated Areas in the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 259-281, July.
    19. Isselhorst, Sarah & Berking, Jonas & Schütt, Brigitta, 2018. "Water pricing following rainfall distribution and its implications for irrigation agriculture," Agricultural Water Management, Elsevier, vol. 199(C), pages 34-47.
    20. Manos, Basil & Begum, Moss. Anjuman Ara & Kamruzzaman, Mohd. & Nakou, Ioanna & Papathanasiou, Jason, 2007. "Fertilizer price policy, the environment and farms behavior," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 87-97.
    21. Francisco J. André & Inés Herrero & Laura Riesgo, 2004. "Using DEA to estimate the importance of objectives for decision makers," Economic Working Papers at Centro de Estudios Andaluces E2004/50, Centro de Estudios Andaluces.
    22. Gomez-Limon, Jose A. & Arriaza, Manuel & Riesgo, Laura, 2003. "An MCDM analysis of agricultural risk aversion," European Journal of Operational Research, Elsevier, vol. 151(3), pages 569-585, December.
    23. Villamayor-Tomas, Sergio, 2014. "Cooperation in common property regimes under extreme drought conditions: Empirical evidence from the use of pooled transferable quotas in Spanish irrigation systems," Ecological Economics, Elsevier, vol. 107(C), pages 482-493.

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