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Water Regulation and Irrigated Agriculture Under the EU Water Framework Directive

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  • Bazzani, Guido Maria
  • di Pasquale, S.
  • Gallerani, Vittorio
  • Viaggi, Davide

Abstract

Water management for irrigation requires suitable policy tools able to meet social objectives and private behaviour. The legal framework in the EU is today faced with the new water framework directive (60/2000), that sets up new criteria for water management, regulation and pricing. Among other things, the water framework directive introduces the principle of full cost recovery and the polluter pays principle for water users. For many areas of Italy, this may be a significant shift compared to present payment criteria, based on traditional rights, political prices, partial running cost coverage or others. The aim of this paper is to analyse the problem of water regulation in agriculture as applied to irrigation issues. This is made by setting up and testing a simulation model based on the integration of a mathematical decision making model at farm level and a principal agent model at the level of irrigation boards. The model allows to quantify water demand and the optimal regulation from the point of view of the policy maker. The results show major impacts of water availability and prices on farm income. The adoption of a mix of pricing instruments related at the same time to crop rotation, water consumption and pollution can significantly improve water policy efficacy.

Suggested Citation

  • Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Regulation and Irrigated Agriculture Under the EU Water Framework Directive," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24898, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24898
    DOI: 10.22004/ag.econ.24898
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    References listed on IDEAS

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    1. Consuelo Varela‐Ortega & José M. Sumpsi & Alberto Garrido & María Blanco & Eva Iglesias, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 193-202, September.
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    Cited by:

    1. Ariel Dinar & Jyothsna Mody, 2004. "Irrigation water management policies: Allocation and pricing principles and implementation experience," Natural Resources Forum, Blackwell Publishing, vol. 28(2), pages 112-122, May.
    2. Battermann, H. & Bergmann, H. & Theuvsen, L. & Bruhn, M., 2010. "Regionalwirtschaftliche Effekte veränderter Wassernutzung in Nordost-Niedersachsen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    3. Theuvsen, Ludwig & Battermann, Henning W., 2011. "Irrigation of farm land under the EU Water Framework Directive," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 11(26), pages 1-9, September.

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