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The Economic Impact of Alternative Water Pricing Policies in Alentejo Region

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  • Rui Fragoso

    ()
    (Universidade de Évora, CEFAGE-UE and ICAAM)

  • Carlos Marques

    ()
    (Universidade de Évora, CEFAGE-UE and ICAAM)

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    Abstract

    Considering the important role of irrigation in the socio-economic development of the Alentejo region in Portugal, this paper aims to assess the economic impact of water pricing in the context of the public irrigation perimeter of Odivelas in that region. The methodological framework uses the estimation of programming models based on optimality conditions as an alternative to the Positive Mathematical Programming approach. The model parameters were estimated using the entropy approach and information priors. The model was formulated on the aggregated scale of the irrigated perimeter, considering the main regional irrigated crops as well as land, labour, capital and water resources.

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    Bibliographic Info

    Paper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2013_02.

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    Length: 29 pages
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:cfe:wpcefa:2013_02

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    Keywords: Estimation; Entropy; Positive Mathematical Programming; Water management.;

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    1. Frija, Aymen & Chebil, Ali & Speelman, Stijn & Van Huylenbroeck, Guido, 2008. "Effect of changes in the institutional structure of irrigation water property rights on the willingness to pay of farmers for water: case of Tunisia," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44422, European Association of Agricultural Economists.
    2. Veettil, Prakashan Chellattan & Speelman, Stijn & Frija, Aymen & Buysse, Jeroen & van Huylenbroeck, Guido, 2011. "Complementarity between water pricing, water rights and local water governance: A Bayesian analysis of choice behaviour of farmers in the Krishna river basin, India," Ecological Economics, Elsevier, vol. 70(10), pages 1756-1766, August.
    3. Kallis, Giorgios & Nijkamp, Peter, 1999. "Evolution of EU water policy : a critical assessment and a hopeful perspective," Serie Research Memoranda 0027, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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    5. Speelman, Stijn & Frija, Aymen & Buysse, Jeroen & Van Huylenbroeck, Guido, 2010. "The Importance of Water Property Rights: Lessons from South Africa and Tunisia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95954, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
    6. Varela-Ortega, Consuelo & M. Sumpsi, Jose & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, Blackwell, vol. 19(1-2), pages 193-202, September.
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    8. Varela-Ortega, Consuelo & Sumpsi, Jose M. & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
    9. Speelman, Stijn & Farolfi, Stefano & Frija, Aymen & D'Haese, Marijke & D'Haese, Luc, 2010. "The impact of the water rights system on smallholder irrigators' willingness to pay for water in Limpopo province, South Africa," Environment and Development Economics, Cambridge University Press, vol. 15(04), pages 465-483, August.
    10. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
    11. Knapp Keith C. & Olson Lars J., 1995. "The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 340-356, May.
    12. 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.
    13. Diakité, Daouda & Semenov, Aggey & Thomas, Alban, 2009. "A proposal for social pricing of water supply in Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 88(2), pages 258-268, March.
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