IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v31y2017i4d10.1007_s11269-017-1574-0.html
   My bibliography  Save this article

On the Scarcity Value of Irrigation Water: Juxtaposing Two Market Estimating Approaches

Author

Listed:
  • Athanasios Kampas

    (Agricultural University of Athens)

  • Stelios Rozakis

    (Technical University of Crete)

Abstract

The aim of this paper is to compare the supply-side and demand-side approaches for assessing the scarcity rents of irrigation water. The results obtained from the case study confirm the expectation that the demand-side rationale provides the lower bound estimate of water scarcity rents. Specifically, a hypothetical elimination of water scarcity brings extra benefits to the local farmers, but these benefits cannot compensate the costs of the backstop technology which provide such extra water. Therefore, the lost opportunities, in terms of income forgone due to water scarcity, cannot legitimize supply-side approaches alone. A “soft” sensitivity analysis was included to examine the robustness of such a cost-effective property, while the policy implications of the results are also examined.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:waterr:v:31:y:2017:i:4:d:10.1007_s11269-017-1574-0
    DOI: 10.1007/s11269-017-1574-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11269-017-1574-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11269-017-1574-0?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ronald C. Griffin, 2006. "Water Resource Economics: The Analysis of Scarcity, Policies, and Projects," MIT Press Books, The MIT Press, edition 1, volume 1, number 026207267x, December.
    2. Koundouri, Phoebe & Pashardes, Panos & Swanson, Timothy & Xepapadeas, Anastasios, 2003. "The Economics of Water Management in Developing Countries Problems, Principles and Policies," MPRA Paper 38137, University Library of Munich, Germany.
    3. R. Quentin Grafton & Linwood H. Pendleton & Harry W. Nelson, 2001. "A Dictionary of Environmental Economics, Science, and Policy," Books, Edward Elgar Publishing, number 1825.
    4. Darrell Krulce & James A. Roumasset & Tom Wilson, 1997. "Optimal Management of a Renewable and Replaceable Resource: The Case of Coastal Groundwater," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1218-1228.
    5. Rijsberman, Frank R., 2006. "Water scarcity: Fact or fiction?," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 5-22, February.
    6. Tsur, Yacov & Dinar, Ariel & Doukkali, Rachid M. & Roe, Terry, 2004. "Irrigation water pricing: policy implications based on international comparison," Environment and Development Economics, Cambridge University Press, vol. 9(6), pages 735-755, December.
    7. Ronald C. Griffin, 2012. "The Origins and Ideals of Water Resource Economics in the United States," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 353-377, August.
    8. Phoebe Koundouri & Panos Pashardes & Timothy Swanson & Anastasios Xepapadeas, "undated". "The Economics of Water Management in Developing Countries Problems, Principles and Policies," DEOS Working Papers 0303, Athens University of Economics and Business.
    9. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
    10. A. Loukas & N. Mylopoulos & L. Vasiliades, 2007. "A Modeling System for the Evaluation of Water Resources Management Strategies in Thessaly, Greece," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(10), pages 1673-1702, October.
    11. James E. T. Moncur & Richard L. Pollock, 1988. "Scarcity Rents for Water: A Valuation and Pricing Model," Land Economics, University of Wisconsin Press, vol. 64(1), pages 62-72.
    12. Athanasios Kampas & Anna Vasilaki & Athanasios Petsakos & Angeliki Stefopoulou, 2013. "Irrigation Full Cost Assessment: The case of the Pinios Local Organization for Land Reclamation, Greece," Working Papers 2013-1, Agricultural University of Athens, Department Of Agricultural Economics.
    13. 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.
    14. R. Amit & Parthasarathy Ramachandran, 2010. "A Fair Contract for Managing Water Scarcity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(6), pages 1195-1209, April.
    15. Tsur, Yacov & Zemel, Amos, 2005. "Scarcity, growth and R&D," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 484-499, May.
    16. Francisco Cabezas, 2012. "The European Water Framework Directive: A Framework?," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 28(1), pages 19-26.
    17. Carlson, Gerald A. & Zilberman, David & Miranowski, John, 1993. "Agricultural and Resource Economics," Staff General Research Papers Archive 11104, Iowa State University, Department of Economics.
    18. John Livernois & Patrick Martin, 2001. "Price, scarcity rent, and a modified r per cent rule for non-renewable resources," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 827-845, August.
    19. Macarena Dagnino & Frank Ward, 2012. "Economics of Agricultural Water Conservation: Empirical Analysis and Policy Implications," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 28(4), pages 577-600.
    20. Phoebe Koundouri & Panos Pashardes & Timothy M. Swanson & Anastasios Xepapadeas (ed.), 2003. "The Economics of Water Management in Developing Countries," Books, Edward Elgar Publishing, number 2846.
    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. Xunzhou Ma & Dan Wu & Shiqiu Zhang, 2018. "Multiple Goals Dilemma of Residential Water Pricing Policy Reform: Increasing Block Tariffs or a Uniform Tariff with Rebate?," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    2. Yali Zhao & Min Li, 2020. "Effect of Water-Saving Society Policy on Water Consumption in the Cities of China: A Propensity Score Matching Analysis," IJERPH, MDPI, vol. 17(21), pages 1-14, November.

    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. Ben Groom & Phoebe Koundouri & Timothy Swanson, 2005. "Cost-benefit analysis and efficient water allocation in Cyprus," DEOS Working Papers 0502, Athens University of Economics and Business.
    2. Koundouri, Phoebe, 2005. "Design and Implementation of an Integrated Water Management Approach," MPRA Paper 38440, University Library of Munich, Germany.
    3. Gill, Tania & Punt, Cecilia, 2010. "The Potential Impact of Increased Irrigation Water Tariffs in South Africa," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96425, African Association of Agricultural Economists (AAAE).
    4. Service Opare, 2011. "Sustaining water supply through a phased community management approach: lessons from Ghana’s “oats” water supply scheme," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(6), pages 1021-1042, December.
    5. Groom, Ben & Koundouri, Phoebe, 2011. "The Economics of Water Resource Allocation: Valuation Methods and Policy Implications," MPRA Paper 41902, University Library of Munich, Germany.
    6. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    7. Erik Ansink & Carmen Marchiori, 2015. "Reallocating Water: An Application of Sequential Sharing Rules to Cyprus," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-22, December.
    8. Rim Lahmandi-Ayed & Mohamed Salah Matoussi, 2018. "Short and Long term Effects of Water Markets," Working Papers hal-01863372, HAL.
    9. Phoebe Koundouri & Stella Tsani & Nikitas Pittis & Eleftherios Levantis, 2019. "Socio-Economic Measures for Achieving Total Water Cost Recovery: A Brief Analysis with Illustration from the Evrotas River Basin, Greece," DEOS Working Papers 1912, Athens University of Economics and Business.
    10. Phoebe Koundouri, 2003. "Potential for groundwater management: Gisser-Sanchez effect reconsidered," DEOS Working Papers 0307, Athens University of Economics and Business.
    11. 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.
    12. Stefanos Xenarios & Heracles Polatidis & Matthew McCartney & Attila Nemes, 2015. "Developing a User-Based Decision-Aid Framework for Water Storage Systems in Sub-Saharan Africa: The Case of Blue Nile Basin in Ethiopia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-30, December.
    13. Phoebe Koundouri & Panos Pashardes, 2003. "Hedonic Price Analysis and Selectivity Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 45-56, September.
    14. Phoebe Koundouri & Ben Groom, 2002. "Groundwater Management: An Overview of Hydro-geology, Economic Values and Principles of Management," DEOS Working Papers 0203, Athens University of Economics and Business.
    15. Erik Ansink & Carmen Marchiori, 2015. "Reallocating Water: An Application of Sequential Sharing Rules to Cyprus," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-22, December.
    16. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 201211, University of Hawaii at Manoa, Department of Economics.
    17. Long Chu & R. Quentin Grafton, 2019. "Policy Note: "Short-term Pain for Long-term Gain: Urban Water Pricing and the Risk-adjusted User Cost"," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-14, April.
    18. Wada, Christopher A. & Pongkijvorasin, Sittidaj & Burnett, Kimberly M., 2020. "Mountain-to-sea ecological-resource management: Forested watersheds, coastal aquifers, and groundwater dependent ecosystems," Resource and Energy Economics, Elsevier, vol. 59(C).
    19. Phoebe Koundouri & Anastasios Xepapadeas, 2004. "Estimating accounting prices for common pool natural resources: A distance function approach," DEOS Working Papers 0405, Athens University of Economics and Business.
    20. Karousakis, Katia & Koundouri, Phoebe, 2006. "A Typology of Economic Instruments and Methods for Efficient Water Resources Management in Arid and Semi-Arid Regions," MPRA Paper 41909, University Library of Munich, Germany.

    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:spr:waterr:v:31:y:2017:i:4:d:10.1007_s11269-017-1574-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.