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MCDM Farm System Analysis for Public Management of Irrigated Agriculture

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  • Gomez-Limon, Jose Antonio
  • Berbel, Julio
  • Arriaza Balmon, Manuel
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    Abstract

    In this paper we present a methodology within the multi-criteria paradigm to assist policy decision-making on water management for irrigation. In order to predict farmers' response to policy changes a separate multi-attribute utility function for each homogeneous group, attained applying cluster analysis, is elicited. The results of several empirical applications of this methodology suggest an improvement of the ability to simulate farmers' decision-making process compared to other approaches. Once the utility functions are obtained the policy maker can evaluate the differential impacts on each cluster and the overall impacts in the area of study (i.e. a river basin) by aggregation. On the empirical side, the authors present some studies for different policy instruments including water pricing, water markets, modernization of irrigation systems and a combination of them.

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    File URL: http://purl.umn.edu/24676
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24676.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae05:24676

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    Keywords: multi-attribute utility theory; water management; irrigation; policy analysis; Agricultural and Food Policy; Q25; Q15; C61;

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    1. Huffaker, Ray & Whittlesey, Norman, 2000. "The allocative efficiency and conservation potential of water laws encouraging investments in on-farm irrigation technology," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 24(1), December.
    2. José A. Gómez-Limón & Laura Riesgo & Manuel Arriaza, 2004. "Multi-Criteria Analysis of Input Use in Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 541-564.
    3. Sumpsi, JoseMaria & Amador, Francisco & Romero, Carlos, 1997. "On farmers' objectives: A multi-criteria approach," European Journal of Operational Research, Elsevier, vol. 96(1), pages 64-71, January.
    4. Randall, Alan, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 25(03), December.
    5. Berbel, J. & Rodriguez-Ocana, A., 1998. "An MCDM approach to production analysis: An application to irrigated farms in Southern Spain," European Journal of Operational Research, Elsevier, vol. 107(1), pages 108-118, May.
    6. Arriaza Balmon, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 2002. "Local water markets for irrigation in southern Spain: A multicriteria approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
    7. José A. Gómez-Limón & Manuel Arriaza & Julio Berbel, 2002. "Conflicting Implementation of Agricultural and Water Policies in Irrigated Areas in the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 259-281.
    8. Solano, C. & Leon, H. & Perez, E. & Herrero, M., 2001. "Characterising objective profiles of Costa Rican dairy farmers," Agricultural Systems, Elsevier, vol. 67(3), pages 153-179, March.
    9. Joyce Willock & Ian J. Deary & Gareth Edwards-Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally-Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303.
    10. Rehman, T. & Romero, C., 1993. "The application of the MCDM paradigm to the management of agricultural systems: Some basic considerations," Agricultural Systems, Elsevier, vol. 41(3), pages 239-255.
    11. Huffaker, Ray & Whittlesey, Norman, 2000. "The allocative efficiency and conservation potential of water laws encouraging investments in on-farm irrigation technology," Agricultural Economics, Blackwell, vol. 24(1), pages 47-60, December.
    12. Siskos, Y. & Despotis, D. K. & Ghediri, M., 1994. "Multiobjective modelling for regional agricultural planning: Case study in Tunisia," European Journal of Operational Research, Elsevier, vol. 77(3), pages 375-391, September.
    13. Glenn D. Schaible, 1997. "Water Conservation Policy Analysis: An Interregional, Multi-Output, Primal-Dual Optimization Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 163-177.
    14. Bergevoet, R. H. M. & Ondersteijn, C. J. M. & Saatkamp, H. W. & van Woerkum, C. M. J. & Huirne, R. B. M., 2004. "Entrepreneurial behaviour of dutch dairy farmers under a milk quota system: goals, objectives and attitudes," Agricultural Systems, Elsevier, vol. 80(1), pages 1-21, April.
    15. 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.
    16. Hayashi, Kiyotada, 2000. "Multicriteria analysis for agricultural resource management: A critical survey and future perspectives," European Journal of Operational Research, Elsevier, vol. 122(2), pages 486-500, April.
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