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An Econometric Analysis of Agricultural Production, Focusing on the Shadow Price of Groundwater: Policies Towards Socio-Economic Sustainability

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Author Info

  • Phoebe Koundouri
  • Osiel Davila

    ()
    (AUEB-RC)

  • Yannis Anastasiou

    (Athens University of Economics and Business)

  • Antonios Antypas

    (Department of Banking and Financial Management, University of Piraeus)

  • Theodoros Mavrogiorgis

    (Athens University of Economics and Business)

  • Aris Mousoulides
  • Marianna Mousoulidou
  • Katerina Vasiliou

    (Athens University of Economics and Business)

Abstract

The focus of Chapter 5 is on the agricultural sector in the Asopos catchment as it has a significant impact on the status of water in the area. In particular, the aim of the chapter is to estimate the farmers valuation of groundwater s shadow price for the region of Asopos. In order to achieve that, an agricultural micro-economic data-set from the catchment has been collected through the use of a detailed agricultural questionnaire. As it will be explained in the chapter, the questionnaire focuses on collecting information regarding cultivations, production structures and use of groundwater for irrigation. The objective of the micro-econometric analysis is to uncover patterns of groundwater use and farm efficiency. The chapter presents the derived estimates that make possible the analysis of the impact of different economic policies, -which will be used for the implementation of an optimal, sustainable and integrated water policy- on farmers profits and social welfare. The chapter finishes with policy recommendations based on the principle of socio-economic sustainability that assures both economic efficiency of farms and concludes with the estimation of groundwater for irrigation shadow price and how this can be used in the design of pumping taxes to reduce pollution and to increase farms efficiency.

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Bibliographic Info

Paper provided by Athens University of Economics and Business in its series DEOS Working Papers with number 1313.

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Length: 4225 pages
Date of creation: 06 Mar 2013
Date of revision:
Publication status: Forthcoming in Koundouri, P., and N. Papandreou (editors); M. Stithou (assistant editor), 2012. Water Resources Management Sustaining Socio-Economic Welfare: The Implementation of the European Water Framework Directive in Asopos River Basin in Greece. Spr
Handle: RePEc:aue:wpaper:1313

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  1. Howe, Charles W., 2002. "Policy issues and institutional impediments in the management of groundwater: lessons from case studies," Environment and Development Economics, Cambridge University Press, vol. 7(04), pages 625-641, October.
  2. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
  3. Koundouri, Phoebe, 2000. "Three approaches to measuring natural resource scarcity: theory and application to groundwater," MPRA Paper 38265, University Library of Munich, Germany.
  4. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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