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Combining the Water Framework Directive with Agricultural Policy Scenarios: A Multi-Objective Analysis for the Future of Irrigated Agricultural in Portugal

Author

Listed:
  • António C. Pinheiro

    (Department of Economics, University of Évora)

  • João Paulo Saraiva

    (Department of Environmental Science and Technology, Imperial College London)

Abstract

It is clear that the successful management of water resources must take into account the influence of policies affecting the irrigated agriculture sector. Among these, the importance of the Common Agricultural Policy (CAP) and of the Water Framework Directive (WFD) is well recognised. In Portugal, more than 606,000 hectares (INE 2001b) are allocated to irrigated agriculture, which accounts for 74.8% of all water uses (INAG 2002). To study the combined effect of these policies, two irrigated regions of Portugal, Baixo Alentejo and Lezíria do Tejo, were analysed in case studies. Multi-Criteria Decision Making models (MCDM) were applied to characterise farmers? decision-making attitudes of the main irrigated agriculture systems of these regions. The implications of environmental (WFD) and agricultural (CAP) policy change are assessed by reproducing farmers? decision-making behaviour. Simulation results indicate that changes in these policies are conducive to substantial adjustments within the irrigated agriculture sector. This study demonstrates that the consequences of implementing the WFD are dependent both on the water price level set by the WFD and on the agricultural policy strategy in place.

Suggested Citation

  • António C. Pinheiro & João Paulo Saraiva, 2005. "Combining the Water Framework Directive with Agricultural Policy Scenarios: A Multi-Objective Analysis for the Future of Irrigated Agricultural in Portugal," Economics Working Papers 2_2005, University of Évora, Department of Economics (Portugal).
  • Handle: RePEc:evo:wpecon:2_2005
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    File URL: http://hdl.handle.net/10174/8432
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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, July.
    4. Berbel, J. & Gomez-Limon, J. A., 2000. "The impact of water-pricing policy in Spain: an analysis of three irrigated areas," Agricultural Water Management, Elsevier, vol. 43(2), pages 219-238, March.
    5. Arriaza Balmón, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 1997. "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), pages 1-23.
    6. 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.
    7. Gomez-Limon, J. A. & Berbel, J., 2000. "Multicriteria analysis of derived water demand functions: a Spanish case study," Agricultural Systems, Elsevier, vol. 63(1), pages 49-72, January.
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    More about this item

    Keywords

    Water Framework Directive; Multi-objective Programming; Irrigated;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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