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Estimating the Potential Impacts of Irrigation Water Pricing Using Multicriteria Decision Making Modelling. An Application to Northern Greece

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  • D. Latinopoulos

Abstract

A great challenge of the current European water policy is the implementation of volumetric water pricing in the agricultural sector, especially of Mediterranean countries, where irrigation is a necessary precondition of agricultural production and farmers’ income, but also the major consumer of water. The overall aim of the present work is to develop a methodology that will be suitable for the estimation of the potential environmental, economic and social impacts of irrigation water pricing. For this purpose, Multi-Attribute Utility Theory is implemented in order to simulate agricultural decision making at various water pricing scenarios. Water demand functions are then elicited, by means of the best crop and water allocation (farmers’ decisions) in each scenario. The European Water Framework Directive recommends that any issue concerning water resources management (including water pricing policies) should be developed at the river basin level. In this framework, a cluster analysis is performed to partition the river basin area (namely, Loudias River Basin, located in Northern Greece) into a small number of homogeneous sub-regions. The differential impact of water pricing in each region is then analyzed, and finally, an average water demand function is formulated for the whole river basin. Copyright Springer Science+Business Media B.V. 2008

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  • 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.
    • Handle: RePEc:spr:waterr:v:22:y:2008:i:12:p:1761-1782
    DOI: 10.1007/s11269-008-9252-x
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    1. Athanasios Kampas & Stelios Rozakis, 2017. "On the Scarcity Value of Irrigation Water: Juxtaposing Two Market Estimating Approaches," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(4), pages 1257-1269, March.
    2. Yiannis Panagopoulos & Elias Dimitriou, 2020. "A Large-Scale Nature-Based Solution in Agriculture for Sustainable Water Management: The Lake Karla Case," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    3. Stelios Rozakis & Alexandra Sintori & Konstantinos Tsiboukas, 2009. "Utility-derived Supply Function of Sheep Milk: The Case of Etoloakarnania, Greece," Working Papers 2009-11, Agricultural University of Athens, Department Of Agricultural Economics.
    4. Pavlos Karanikolas & Stelios Rozakis & Dimitris Kremmydas, 2013. "The multiplicity of goals in tree-cultivating farms in Greece," Working Papers 2013-2, Agricultural University of Athens, Department Of Agricultural Economics.
    5. Zenebe Gebreegziabher & Kooten, G. Cornelis van, 2016. "Single versus Multiple Objective(s) Decision Making: An Application to Subsistence Farms in Northern Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 24(2), August.
    6. Rozakis, Stelios & Sintori, Alexandra & Tsiboukas, Konstantinos, 2012. "Estimating utility functions of Greek dairy sheep farmers: A multicriteria mathematical programming approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-10.
    7. Teresa Torregrosa & Martín Sevilla & Borja Montaño & Victoria López-Vico, 2010. "The Integrated Management of Water Resources in Marina Baja (Alicante, Spain). A Simultaneous Equation Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(14), pages 3799-3815, November.
    8. 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.
    9. Khampheng Boudmyxay & Shuai Zhong & Lei Shen, 2019. "Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms," Sustainability, MDPI, vol. 11(9), pages 1-20, May.

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