IDEAS home Printed from https://ideas.repec.org/a/ags/earnsa/229590.html
   My bibliography  Save this article

Analysing the economic value of meteorological information to improve crop risk management decisions in a dynamic context

Author

Listed:
  • Cerdá, Emilio
  • Quiroga, Sonia

Abstract

We evaluate the added value of a forecast service that can provide probabilistic predictions for adverse weather events for two differentiated seasons, corresponding to the same productive cycle. The paper builds on a cost-loss dynamic model, by considering the role of forecasting systems in the decision making process. We present the analytical solution for this problem which is consistent with the numerical results in the literature. However, we prove that there is a range of regions for the optimal policy depending on the cost of crop protection, the avoided loss and the quality of the information available. Finally, we illustrate the results with a numerical example.

Suggested Citation

  • Cerdá, Emilio & Quiroga, Sonia, 2015. "Analysing the economic value of meteorological information to improve crop risk management decisions in a dynamic context," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(02).
    • Handle: RePEc:ags:earnsa:229590
    DOI: 10.22004/ag.econ.229590
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/229590/files/cerda%20y%20quiroga.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.229590?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Emilio Cerdá Tena & Sonia Quiroga Gómez, 2011. "Economic value of weather forecasting: the role of risk aversion," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 130-149, July.
    3. Quiroga, Sonia & Cerda, Emilio, 2009. "Optimal crop protection against climate risk in a dynamic cost-loss decision-making model," 2009 Conference, August 16-22, 2009, Beijing, China 51702, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sonia Quiroga & Emilio Cerdá, 2017. "Exploring farmers? selection of crop protection levels as an adaptation strategy to climate risks," Proceedings of Economics and Finance Conferences 4507414, International Institute of Social and Economic Sciences.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sonia Quiroga & Emilio Cerdá, 2017. "Exploring farmers? selection of crop protection levels as an adaptation strategy to climate risks," Proceedings of Economics and Finance Conferences 4507414, International Institute of Social and Economic Sciences.
    2. Prakashan Veettil & Stijn Speelman & Guido Huylenbroeck, 2013. "Estimating the Impact of Water Pricing on Water Use Efficiency in Semi-arid Cropping System: An Application of Probabilistically Constrained Nonparametric Efficiency Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 55-73, January.
    3. Fernandez, Mario Andres, 2013. "Decadal Climate Variability: Economic Implications In Agriculture And Water In The Missouri River Basin," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160199, New Zealand Agricultural and Resource Economics Society.
    4. Rui Fragoso & Carlos Marques, 2013. "The Economic Impact of Alternative Water Pricing Policies in Alentejo Region," CEFAGE-UE Working Papers 2013_02, University of Evora, CEFAGE-UE (Portugal).
    5. Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Riesgo, Laura, 2016. "Modeling at farm level: Positive Multi-Attribute Utility Programming," Omega, Elsevier, vol. 65(C), pages 17-27.
    6. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Policy And The Sustainability Of Irrigated Systems In Italy," Working Papers 14401, University of Minnesota, Center for International Food and Agricultural Policy.
    7. 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.
    8. Chebil, A. & Frija, A. & Thabet, C., 2012. "Irrigation water pricing between governmental policies and farmers’ perception: Implications for green-houses horticultural production in Teboulba (Tunisia)," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), pages 1-11.
    9. Balali, Hamid & Khalilian, Sadegh & Viaggi, Davide & Bartolini, Fabio & Ahmadian, Majid, 2011. "Groundwater balance and conservation under different water pricing and agricultural policy scenarios: A case study of the Hamadan-Bahar plain," Ecological Economics, Elsevier, vol. 70(5), pages 863-872, March.
    10. Roe, Terry & Dinar, Ariel & Tsur, Yacov & Diao, Xinshen, 2005. "Feedback links between economy-wide and farm-level policies: With application to irrigation water management in Morocco," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 905-928, November.
    11. Riesgo, Laura & Gómez-Limón, José A., 2005. "Multi-Criteria Policy Scenarios Analysis for Public Management of Irrigated Agriculture," 89th Seminar, February 2-5, 2005, Parma, Italy 239276, European Association of Agricultural Economists.
    12. 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.
    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. Bartolini, F. & Bazzani, G.M. & Gallerani, V. & Raggi, M. & Viaggi, D., 2007. "The impact of water and agriculture policy scenarios on irrigated farming systems in Italy: An analysis based on farm level multi-attribute linear programming models," Agricultural Systems, Elsevier, vol. 93(1-3), pages 90-114, March.
    15. Poussin, J.C. & Imache, A. & Beji, R. & Le Grusse, P. & Benmihoub, A., 2008. "Exploring regional irrigation water demand using typologies of farms and production units: An example from Tunisia," Agricultural Water Management, Elsevier, vol. 95(8), pages 973-983, August.
    16. Wu Jian & Wang Xiaoxia & Niu Kunyu, 2010. "Cost-Effectiveness of Policy Options for Sustainable Wetland Conservation: A Case Study of Qixinghe Wetland, China," EEPSEA Research Report rr2010021, Economy and Environment Program for Southeast Asia (EEPSEA), revised Feb 2010.
    17. Varela-Ortega, C., 2007. "Policy-driven determinants of irrigation development and environmental sustainability: a case study in Spain," IWMI Books, Reports H040612, International Water Management Institute.
    18. Gema Carmona & Consuelo Varela-Ortega & John Bromley, 2011. "The Use of Participatory Object-Oriented Bayesian Networks and Agro-Economic Models for Groundwater Management in Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(5), pages 1509-1524, March.
    19. Yiyu Feng & Ming Chang & Erga Luo & Jing Liu, 2023. "Has Property Rights Reform of China’s Farmland Water Facilities Improved Farmers’ Irrigation Efficiency?—Evidence from a Typical Reform Pilot in China’s Yunnan Province," Agriculture, MDPI, vol. 13(2), pages 1-27, January.
    20. Mouratiadou, Ioanna & Topp, Cairistiona & Moran, Dominic, 2008. "Modelling Agricultural Diffuse Pollution: CAP – WFD Interactions and Cost Effectiveness of Measures," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6461, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:earnsa:229590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.