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Irrigation water demand for the decision maker

Author

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  • Bontemps, Christophe
  • Couture, Stéphane

Abstract

This paper deals with the problems of estimating irrigation water demand. We propose an original method of estimation in two steps. First, we develop a dynamic programming model in order to explain the optimal irrigation management plan. Based on a microeconomic approach describing the farmer's behavior, this economic model, introducing an agronomic model, and an algorithm of solution search, is used to compute a realistic database. Second, these data are used to estimate profit functions by a non-parametric method. The irrigation water demand function is estimated using a non-parametric derivation procedure.An application to irrigation water demand is proposed in the southwestern area of France where conflicts appear frequently. The same results appear for different climates: for small quantities of water available, irrigation water demand seems to be quite inelastic. If one increases the total quantity of water available, the shape of the curve changes and the demand appears more elastic. The threshold price at which the changes in price-responsiveness appears, depends on weather conditions and range from 0.30 F/m3 in a wet year to 1.60 F/m3 in a dry year. These results are crucial information for the regulator in order to analyze the effects of a water regulation policy, based on prices. The impact of an increase in the water price will depend not only on the climate but also on the location of the initial and final prices on the demand function.JEL classification: C14, C16, Q15

Suggested Citation

  • Bontemps, Christophe & Couture, Stéphane, 2002. "Irrigation water demand for the decision maker," Environment and Development Economics, Cambridge University Press, vol. 7(4), pages 643-657, October.
    • Handle: RePEc:cup:endeec:v:7:y:2002:i:04:p:643-657_00
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    Citations

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    Cited by:

    1. Gill, Tania & Punt, Cecilia, 2010. "The Potential Impact of Increased Irrigation Water Tariffs in South Africa," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96425, African Association of Agricultural Economists (AAAE).
    2. Faye, Amy & Msangi, Siwa, 2018. "Rainfall variability and groundwater availability for irrigation in Sub-Saharan Africa: evidence from the Niayes region of Senegal," MPRA Paper 92625, University Library of Munich, Germany.
    3. Djiby Racine Thiam & Ariel Dinar & Hebert Ntuli, 2021. "Promotion of residential water conservation measures in South Africa: the role of water-saving equipment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 173-210, January.
    4. Jong-Hee Hahn & Youngjun Lee, 2023. "Sequential Pricing in Successive or Bilateral Monopolies with Separate Consumer Groups," Korean Economic Review, Korean Economic Association, vol. 39, pages 495-516.
    5. Tala Qtaishat, 2013. "Impact of Water Reallocation on the Economy in the Fertile Crescent," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(10), pages 3765-3774, August.
    6. Moreno, Georgina & Sunding, David L. & Schoengold, Karina, 2004. "Panel Estimation Of Water Demand Based On An Episode Of Rate Reform," 2004 Annual meeting, August 1-4, Denver, CO 20342, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Li, Xuemin & Zhang, Jingwen & Cai, Ximing & Huo, Zailin & Zhang, Chenglong, 2023. "Simulation-optimization based real-time irrigation scheduling: A human-machine interactive method enhanced by data assimilation," Agricultural Water Management, Elsevier, vol. 276(C).
    8. repec:grm:ecoyun:201708 is not listed on IDEAS
    9. Andrea Pronti & Julio Berbel, 2020. "Analysis of the impact of a volumetric tariff for irrigation in Northern Italy through the “Inverse DiD†approach," SEEDS Working Papers 1320, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jul 2020.

    More about this item

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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