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Design of an incentive-based tool for effective water saving policy in agriculture

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  • Giannoccaro, Giacomo
  • Roselli, Luigi
  • Sardaro, Ruggiero
  • de Gennaro, Bernardo C.

Abstract

This study proposes a novel agri-environmental payment scheme aimed at saving irrigation water. The design incorporates an outcomes-based reward system, ensuring effective savings of water volumes in on-farm uses. A choice experiment (CE) was conducted with 259 farmers, in a pilot study of a water-stressed region with Mediterranean climate. Values for each attribute were estimated using the Random Parameter Logit Model. The environmental payment scheme resulted as receiving good acceptance by the interviewees. The duration of the commitment has the highest relevance in the farmers’ choice behaviour, followed by the water savings effort. In general, the findings show that farmers are willing to save water in response to the tested payment scheme. Based on the significance of covariates, however, the variable of the farm’s crop specialisation is critical in the farmer’s choice. The main findings suggest that it is advisable to target the payment scheme based on crop profitability, territorial dimension, and taking into account the groundwater salinity map.

Suggested Citation

  • Giannoccaro, Giacomo & Roselli, Luigi & Sardaro, Ruggiero & de Gennaro, Bernardo C., 2022. "Design of an incentive-based tool for effective water saving policy in agriculture," Agricultural Water Management, Elsevier, vol. 272(C).
    • Handle: RePEc:eee:agiwat:v:272:y:2022:i:c:s0378377422004139
    DOI: 10.1016/j.agwat.2022.107866
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    Cited by:

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    3. Yang, Yang & He, Weijun & Jiang, Ningye & Xu, Shasha & Ramsey, Thomas Stephen & Yuan, Liang, 2024. "The intertemporal choice study of individual water-saving irrigation construction under three water pricing and subsidy scenarios," Agricultural Water Management, Elsevier, vol. 295(C).
    4. Ivan Portoghese & Raffaella Matarrese & Laura Mirra & Giacomo Giannoccaro, 2025. "Assimilating Farmers’ Behaviour in the Development of an ET-Based Irrigation Water-Accounting Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 39(14), pages 7749-7774, November.
    5. Xin, Jing & Zhou, Hui & Yang, Hongqiang & Sheng, Jichuan, 2025. "The command paradox: Unraveling the impact of command-and-control water conservation policies on water-use technical efficiency," Ecological Economics, Elsevier, vol. 230(C).
    6. Behnam Momeni & Shima Mohebbi, 2025. "Differential Game Theoretic Models for Designing Water Conservation Incentives," Decision Analysis, INFORMS, vol. 22(2), pages 120-146, June.
    7. Pauline Pedehour & Marianne Lefebvre, 2023. "Combining digital technologies and incentives for water conservation: A Q-method study to understand preferences of French irrigators," Post-Print hal-04626643, HAL.
    8. A. Pronti & J. Berbel, 2025. "Water Demand Elasticity in Agriculture: The Case of the Central Emilia Irrigation Water District," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(3), pages 1267-1300, November.

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