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

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

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 46 (2002)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:aareaj:118068

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    Keywords: Resource /Energy Economics and Policy;

    References

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    1. Becker, Nir, 1995. "Value of moving from central planning to a market system: lessons from the Israeli water sector," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 12(1), April.
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    8. Hatch, Roy E. & Harman, Wyatte L. & Eidman, Vernon R., 1974. "Incorporating Multiple Goals Into The Decision-Making Process: A Simulation Approach To Firm Growth Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 6(01), July.
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    10. Booker J. F. & Young R. A., 1994. "Modeling Intrastate and Interstate Markets for Colorado River Water Resources," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 66-87, January.
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    Cited by:
    1. Gomez-Limon, Jose Antonio & Riesgo, Laura & Arriaza Balmon, Manuel, 2003. "Multi-Criteria Analysis Of Factors Use Level: The Case Of Water For Irrigation," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25836, International Association of Agricultural Economists.
    2. 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.
    3. Gomez-Limon, Jose Antonio & Berbel, Julio & Arriaza Balmon, 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.
    4. 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.
    5. 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), January.
    6. Pujol, Joan & Raggi, Meri & Viaggi, Davide, 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), September.
    7. 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.
    8. Manuel Arriaza & José Antonio Gómez-Limón Rodríguez, 2006. "El futuro del algodón en Andalucía tras la reforma del régimen de apoyo al cultivo," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 3, pages 13-46.
    9. 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.
    10. D. Latinopoulos, 2008. "Estimating the Potential Impacts of Irrigation Water Pricing Using Multicriteria Decision Making Modelling. An Application to Northern Greece," Water Resources Management, Springer, vol. 22(12), pages 1761-1782, December.
    11. 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.
    12. 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.
    13. Arriaza Balmon, 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.
    14. 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.
    15. Julia Martín Ortega & Carlos Gutiérrez Martín & Julio Berbel Vecino, 2008. "Caracterización de los usos del agua en la Demarcación del Guadalquivir en aplicación de la Directiva Marco de Aguas," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 1, pages 45-76.
    16. 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.
    17. 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.

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