IDEAS home Printed from https://ideas.repec.org/p/lam/wpaper/08-14.html
   My bibliography  Save this paper

Information revelation through irrigation water pricing using volume reservations

Author

Listed:
  • Mabel Tidball
  • Jean-Philippe Terreaux

Abstract

We study the properties of a pricing rule for irrigation water with two variables:the volume consumed by the farmer and the volume he/she reserves before the plantation. With a simple deterministic model, we show how this pricing rule allows the Water User Association manager to anticipate any possible usage conflict thanks to farmer information revelation, to guarantee his/her association budget equilibrium. We show too how farmers are incited to restrain their use of water. Moreover this pricing method is fair (all farmers are equally treated), flexible through the possible change of the value of the parameters, and moreover simple and easily understandable (when for example translated in a double entry table). Therefore, it compares favorably to other classical water pricing methods.

Suggested Citation

  • Mabel Tidball & Jean-Philippe Terreaux, 2008. "Information revelation through irrigation water pricing using volume reservations," Working Papers 08-14, LAMETA, Universtiy of Montpellier, revised Sep 2008.
    • Handle: RePEc:lam:wpaper:08-14
    as

    Download full text from publisher

    File URL: http://www.lameta.univ-montp1.fr/Documents/DR2008-14.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ragan A. Petrie & Laura O. Taylor, 2007. "Estimating the Value of Water Use Permits: A Hedonic Approach Applied to Farmland in the Southeastern United States," Land Economics, University of Wisconsin Press, vol. 83(3), pages 302-318.
    2. Garcia, Serge & Reynaud, Arnaud, 2004. "Estimating the benefits of efficient water pricing in France," Resource and Energy Economics, Elsevier, vol. 26(1), pages 1-25, March.
    3. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    4. Amgad Elmahdi & Hector Malano & Teri Etchells, 2007. "Using system dynamics to model water-reallocation," Environment Systems and Decisions, Springer, vol. 27(1), pages 3-12, March.
    5. Johansson, Robert C., 2000. "Pricing irrigation water : a literature survey," Policy Research Working Paper Series 2449, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Philippe Terreaux & Mabel Tidball, 2020. "Can Nonlinear Water Pricing Help to Mitigate Drought Effects in Temperate Countries?," Post-Print halshs-02283100, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaojia Bao, 2016. "Water, Electricity and Weather Variability in Rural Northern China," Working Papers 2014-07-02, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    2. Schleich, Joachim & Hillenbrand, Thomas, 2009. "Determinants of residential water demand in Germany," Ecological Economics, Elsevier, vol. 68(6), pages 1756-1769, April.
    3. Sidibe, Yoro & Williams, Timothy O., 2015. "Valuation of water in large-scale agricultural land investments in Mali: Efficiency and equity trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 212235, International Association of Agricultural Economists.
    4. Wang, Hua & Xie, Jian & Li, Honglin, 2010. "Water pricing with household surveys: A study of acceptability and willingness to pay in Chongqing, China," China Economic Review, Elsevier, vol. 21(1), pages 136-149, March.
    5. Worthington, Andrew C., 2010. "Commercial and Industrial Water Demand Estimation: Theoretical and Methodological Guidelines for Applied Economics Research/Estimación de la demanda de agua comercial e industrial: pautas teóricas y m," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 237-258, Agosto.
    6. Jean-Philippe Terreaux & Mabel Tidball, 2020. "Can Nonlinear Water Pricing Help to Mitigate Drought Effects in Temperate Countries?," Post-Print halshs-02283100, HAL.
    7. Havranek, Tomas & Irsova, Zuzana & Vlach, Tomas, 2016. "Publication Bias in Measuring the Income Elasticity of Water Demand," MPRA Paper 75247, University Library of Munich, Germany.
    8. Tomas Havranek & Zuzana Irsova & Tomas Vlach, 2018. "Measuring the Income Elasticity of Water Demand: The Importance of Publication and Endogeneity Biases," Land Economics, University of Wisconsin Press, vol. 94(2), pages 259-283.
    9. Dinusha Dharmaratna & Edwyna Harris, 2012. "Estimating Residential Water Demand Using the Stone-Geary Functional Form: The Case of Sri Lanka," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(8), pages 2283-2299, June.
    10. Acuña, Guillermo, 2017. "Elasticidades de la demanda de agua en Chile [Elasticities of water demand in Chile]," MPRA Paper 82916, University Library of Munich, Germany.
    11. Christopher Müller, 2015. "Welfare Effects of Water Pricing in Germany," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-25, December.
    12. Marie-Estelle Binet & Fabrizio Carlevaro & Michel Paul, 2014. "Estimation of Residential Water Demand with Imperfect Price Perception," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 561-581, December.
    13. Molle, Francois & Berkoff, Jeremy, 2007. "Water pricing in irrigation: the lifetime of an idea," Book Chapters,, International Water Management Institute.
    14. Ben Zaied Younes, 2013. "A long-run analysis of residential water consumption," Economics Bulletin, AccessEcon, vol. 33(1), pages 536-544.
    15. World Bank, 2006. "Reengaging in Agricultural Water Management: Challenges and Options," World Bank Publications - Books, The World Bank Group, number 6957, December.
    16. Lenka Slavíková & Vítězslav Malý & Michael Rost & Lubomír Petružela & Ondřej Vojáček, 2013. "Impacts of Climate Variables on Residential Water Consumption in the Czech Republic," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(2), pages 365-379, January.
    17. Woo, Chi-Keung & Wong, Wing-Keung & Horowitz, Ira & Chan, Hing-Lin, 2012. "Managing a scarce resource in a growing Asian economy: Water usage in Hong Kong," Journal of Asian Economics, Elsevier, vol. 23(4), pages 374-382.
    18. REYNAUD Arnaud, 2006. "Assessing the impact of public regulation and private participation on water affordability for poor households: An empirical investigation of the French case," LERNA Working Papers 06.09.202, LERNA, University of Toulouse.
    19. repec:ags:aare05:139341 is not listed on IDEAS
    20. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    21. Juodis, Arturas & Sarafidis, Vasilis, 2015. "A Simple Estimator for Short Panels with Common Factors," MPRA Paper 68164, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lam:wpaper:08-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Patricia Modat (email available below). General contact details of provider: https://edirc.repec.org/data/lamplfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.